Frontdoor Inc (FTDR)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total assets | US$ in thousands | 1,089,000 | 1,082,000 | 1,069,000 | 1,405,000 | 1,250,000 |
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,089,000K
= 0.00
Frontdoor Inc.'s debt-to-assets ratio has shown a declining trend over the past five years, decreasing from 0.78 in 2019 to 0.55 in 2023. This indicates that the company has been able to reduce its reliance on debt financing relative to its total assets over the years. A lower debt-to-assets ratio suggests lower financial risk and greater financial stability for the company, as it signifies that a smaller portion of its assets is funded by debt.
Although the ratio fluctuated slightly between 2020 and 2022, the overall downward trend is a positive sign for Frontdoor Inc. It suggests that the company may be managing its debt levels effectively or increasing its asset base without taking on significant additional debt. A decreasing debt-to-assets ratio may also imply improved financial health and creditworthiness, as it indicates a stronger ability to repay debts using its assets.
Investors and creditors may view Frontdoor Inc.'s decreasing debt-to-assets ratio positively as it indicates a more conservative financial structure and potentially lower default risk. However, it is essential to consider other financial metrics and industry benchmarks to gain a comprehensive understanding of the company's overall financial health and performance.
Peer comparison
Dec 31, 2023