Frontdoor Inc (FTDR)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 136,000 61,000 2,000 -61,000 -179,000
ROE 125.74% 116.39% 6,400.00%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $171,000K ÷ $136,000K
= 125.74%

Frontdoor Inc.'s return on equity (ROE) has shown significant fluctuations over the past five years. In 2023, the ROE stood at 124.82%, reflecting strong profitability and efficiency in generating returns for shareholders. This marked an increase from the previous year's ROE of 116.39%, indicating continued improvement in utilizing shareholder equity effectively.

In contrast, the ROE in 2021 was exceptionally high at 4,233.33%, which could be an anomaly or driven by specific events or accounting adjustments during that period. The absence of ROE data for 2020 and 2019 limits the ability to provide a complete trend analysis.

Overall, the recent ROE figures suggest that Frontdoor Inc. has been able to deliver impressive returns to its shareholders, maintaining a high level of profitability relative to its equity base. However, further analysis of the company's financial performance and underlying factors influencing ROE would be necessary to gain a more comprehensive understanding of its financial health and performance over time.


Peer comparison

Dec 31, 2023