Frontdoor Inc (FTDR)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 239,000 | 137,000 | 61,000 | 3,000 | -61,000 |
| ROE | 98.33% | 124.82% | 116.39% | 4,266.67% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $235,000K ÷ $239,000K
= 98.33%
Frontdoor Inc's return on equity (ROE) has shown fluctuating trends over the years. In December 31, 2021, the ROE was exceptionally high at 4,266.67%, which may indicate strong financial performance and efficient utilization of shareholder equity. However, this unusually high value might be influenced by certain accounting anomalies or one-time events.
Subsequently, the ROE decreased to 116.39% in December 31, 2022, which is still a healthy return indicating the company's ability to generate profits from shareholders' equity. The ROE further decreased to 124.82% in December 31, 2023. Despite the decrease, the ROE remains at a relatively high level, suggesting that the company is still effectively generating profits from equity investments.
By December 31, 2024, the ROE declined to 98.33%, indicating a further decrease in the company's ability to generate profits from equity compared to the previous years. Frontdoor Inc may need to evaluate its financial strategies to improve ROE in the future and sustain profitability. The company's management should continue monitoring and optimizing the use of equity to ensure sustainable and profitable operations.
Peer comparison
Dec 31, 2024