Frontdoor Inc (FTDR)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 352,000 | 355,000 | 318,000 | 288,000 | 270,000 | 265,000 | 206,000 | 154,000 | 123,000 | 117,000 | 178,000 | 192,000 | 200,000 | 201,000 | 170,000 | 180,000 | 195,000 | 221,000 | 242,000 | 263,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 239,000 | 261,000 | 214,000 | 162,000 | 137,000 | 170,000 | 131,000 | 83,000 | 61,000 | 48,000 | 6,000 | -19,000 | 3,000 | 62,000 | 2,000 | -46,000 | -61,000 | -71,000 | -125,000 | -178,000 |
| Return on total capital | 147.28% | 136.02% | 148.60% | 177.78% | 197.08% | 155.88% | 157.25% | 185.54% | 201.64% | 243.75% | 2,966.67% | — | 6,666.67% | 324.19% | 8,500.00% | — | — | — | — | — |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $352,000K ÷ ($—K + $239,000K)
= 147.28%
Frontdoor Inc's return on total capital has shown significant fluctuations over the past few years. The ratio was not available for analysis in the periods up to March 31, 2022. However, from June 30, 2022 to September 30, 2023, there was a notable increase in the return on total capital, reaching a peak of 324.19% on September 30, 2021.
Subsequently, the return on total capital experienced some fluctuations but generally remained at elevated levels, indicating the company's ability to generate substantial returns relative to its invested capital. By the end of December 31, 2024, the return on total capital stood at 147.28%, although it had decreased from the previous periods.
Overall, Frontdoor Inc's return on total capital demonstrates variability but generally indicates a strong performance in utilizing its capital efficiently to generate returns for its investors. Continued monitoring of this metric will be important to assess the company's ongoing financial performance and capital management strategies.
Peer comparison
Dec 31, 2024