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