Frontdoor Inc (FTDR)
Return on total capital
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 268,000 | 263,000 | 205,000 | 152,000 | 124,000 | 121,000 | 182,000 | 198,000 | 206,000 | 208,000 | 179,000 | 193,000 | 206,000 | 230,000 | 249,000 | 265,000 | 267,000 | 267,000 | 241,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 136,000 | 171,000 | 131,000 | 83,000 | 61,000 | 47,000 | 6,000 | -20,000 | 2,000 | 62,000 | 3,000 | -46,000 | -61,000 | -71,000 | -125,000 | -178,000 | -179,000 | -219,000 | -278,000 |
| Return on total capital | 197.06% | 153.80% | 156.49% | 183.13% | 203.28% | 257.45% | 3,033.33% | — | 10,300.00% | 335.48% | 5,966.67% | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $268,000K ÷ ($—K + $136,000K)
= 197.06%
Frontdoor Inc.'s return on total capital has shown a positive trend over the past eight quarters, with a consistent increase from 23.13% in Q4 2022 to 36.53% in Q4 2023. This indicates the company's ability to generate earnings from its total invested capital. The improving trend reflects the company's efficiency in utilizing its capital to generate profits.
The return on total capital peaked at 37.71% in Q1 2022 but then experienced a slight decline before rebounding and reaching new highs in the latest quarter. This fluctuation may suggest varying levels of capital efficiency or changes in the company's operational performance during these periods.
Overall, the upward trajectory of Frontdoor Inc.'s return on total capital signals effective capital management and a positive outlook for the company's financial performance. Investors and stakeholders may view this trend favorably as it indicates the company's ability to generate significant returns relative to the total capital employed, potentially leading to sustainable growth and shareholder value.
Peer comparison
Dec 31, 2023