Frontdoor Inc (FTDR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 8.82 | 7.95 | 17.74 | 356.33 | — |
Frontdoor Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the years 2020 to 2024.
- Debt-to-assets ratio: Frontdoor Inc maintained a Debt-to-assets ratio of 0.00 across all the years, suggesting that the company has no debt obligations in relation to its total assets.
- Debt-to-capital ratio: The Debt-to-capital ratio was not available in 2020, but from 2021 to 2024, the ratio remained at 0.00, indicating minimal debt compared to the total capital employed in the business.
- Debt-to-equity ratio: Similar to the Debt-to-capital ratio, the Debt-to-equity ratio was not available for 2020, but from 2021 to 2024, Frontdoor Inc maintained a Debt-to-equity ratio of 0.00, showcasing that the company's debt levels were negligible compared to its equity base.
- Financial leverage ratio: The Financial leverage ratio, which compares the company's total assets to its equity, was not available in 2020. However, in the subsequent years, the ratio decreased significantly from 356.33 in 2021 to 8.82 in 2024. This reduction implies a decline in financial risk and a stronger equity base to support the company's assets.
Overall, Frontdoor Inc's solvency ratios reflect a stable and secure financial standing, with minimal debt levels and a healthy capital structure over the years analyzed.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 7.44 | 5.83 | 4.58 | 6.79 | 4.10 |
Frontdoor Inc's interest coverage ratio has shown fluctuations over the past five years. In December 31, 2020, the ratio was 4.10, indicating that the company's operating income was able to cover its interest expenses 4.1 times.
By December 31, 2021, the interest coverage ratio improved to 6.79, suggesting an increase in the company's ability to meet its interest obligations from operating profits. However, in December 31, 2022, the ratio decreased to 4.58, indicating a slight weakening in the company's ability to cover its interest expenses.
In the following years, the interest coverage ratio continued to exhibit variability. By December 31, 2023, the ratio improved to 5.83, suggesting a better ability to service interest expenses. Finally, as of December 31, 2024, the ratio increased to 7.44, indicating a further strengthening of Frontdoor Inc's capacity to meet its interest payments from operating income.
Overall, the trend in the interest coverage ratio for Frontdoor Inc shows fluctuations, with some years demonstrating improved coverage while others show a slight decline. Investors and analysts may want to closely monitor this ratio to ensure the company's ability to meet its interest obligations remains healthy.