Frontdoor Inc (FTDR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 136,000 | 61,000 | 2,000 | -61,000 | -179,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $136,000K)
= 0.00
Frontdoor Inc.'s debt-to-capital ratio has shown a declining trend over the past five years. The ratio decreased from 1.22 in 2019 to 0.81 in 2023. This indicates that the company has been successful in reducing its reliance on debt to finance its operations relative to its total capital. A lower debt-to-capital ratio is generally considered a positive sign as it suggests a lower risk of financial distress and greater financial stability. However, it is important to note that while the decreasing trend is positive, the ratio of 0.81 in 2023 still indicates that a significant portion of Frontdoor's capital structure is funded by debt. Investors and analysts may continue to monitor the trend in the debt-to-capital ratio to assess the company's financial health and risk profile.
Peer comparison
Dec 31, 2023