Frontdoor Inc (FTDR)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 235,000 | 171,000 | 71,000 | 128,000 | 112,000 |
| Total assets | US$ in thousands | 2,107,000 | 1,089,000 | 1,082,000 | 1,069,000 | 1,405,000 |
| ROA | 11.15% | 15.70% | 6.56% | 11.97% | 7.97% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $235,000K ÷ $2,107,000K
= 11.15%
Frontdoor Inc's Return on Assets (ROA) is a key financial metric that indicates how efficiently the company is generating profits from its assets. Analyzing the trend of Frontdoor Inc's ROA from December 31, 2020, to December 31, 2024, reveals fluctuations over the period.
Frontdoor Inc's ROA increased from 7.97% in December 31, 2020, to 11.97% in December 31, 2021, demonstrating an improvement in profitability and asset utilization. However, there was a decline in ROA to 6.56% by December 31, 2022, which may indicate potential issues with asset efficiency or profitability.
The company's ROA rebounded significantly to 15.70% by December 31, 2023, showing a strong performance in generating profits relative to its asset base. This increase suggests improved operational efficiency and effective asset management.
By December 31, 2024, Frontdoor Inc's ROA slightly decreased to 11.15% compared to the previous year but remained relatively high, indicating that the company continues to effectively utilize its assets to generate profits.
Overall, the fluctuating trend in Frontdoor Inc's ROA highlights varying levels of efficiency and profitability in utilizing its assets over the analyzed period. Investors and stakeholders may monitor these changes to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2024