Frontdoor Inc (FTDR)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 171,000 | 71,000 | 128,000 | 112,000 | 153,000 |
| Total assets | US$ in thousands | 1,089,000 | 1,082,000 | 1,069,000 | 1,405,000 | 1,250,000 |
| ROA | 15.70% | 6.56% | 11.97% | 7.97% | 12.24% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $171,000K ÷ $1,089,000K
= 15.70%
Frontdoor Inc.'s Return on Assets (ROA) has shown variability over the five-year period from 2019 to 2023. In 2023, the company's ROA improved significantly to 15.70%, indicating that the company generated a higher level of profit relative to its total assets compared to the previous years. This could suggest that Frontdoor Inc. has become more efficient in utilizing its assets to generate earnings for its shareholders.
The ROA was relatively low in 2022 at 6.56%, signaling that the company's profitability in relation to its assets decreased significantly that year. However, the ROA rebounded in 2021 to 11.88%, showcasing an improvement in asset utilization and profitability.
In 2020 and 2019, the company's ROA stood at 8.04% and 12.31%, respectively. Frontdoor Inc.'s performance in these years indicates a moderate level of profitability in relation to its assets, with 2019 showing a relatively higher ROA compared to 2020.
Overall, the fluctuation in Frontdoor Inc.'s ROA over the period suggests varying levels of asset efficiency and profitability. Investors and stakeholders may want to further investigate the reasons behind these changes to assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2023