Frontdoor Inc (FTDR)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 357,000 | 274,000 | 119,000 | 197,000 | 197,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 239,000 | 137,000 | 61,000 | 3,000 | -61,000 |
| Return on total capital | 149.37% | 200.00% | 195.08% | 6,566.67% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $357,000K ÷ ($—K + $239,000K)
= 149.37%
Frontdoor Inc's return on total capital has shown significant fluctuations over the past few years. The return on total capital was not available for December 31, 2020. The return skyrocketed to an impressive 6,566.67% on December 31, 2021, indicating a significant boost in the company's ability to generate profits relative to its total capital employed. However, there was a notable decrease to 195.08% on December 31, 2022, which may suggest a decrease in the efficiency of utilizing capital to generate returns.
Subsequently, on December 31, 2023, the return on total capital improved to 200.00%, showing a recovery in the company's profitability relative to its capital base. By December 31, 2024, the return on total capital decreased to 149.37%, indicating a slight decline in the firm's profitability compared to the previous year. Overall, while Frontdoor Inc experienced significant fluctuations in its return on total capital, the company's ability to generate returns relative to its total capital has shown some volatility over the years.
Peer comparison
Dec 31, 2024