Frontdoor Inc (FTDR)
Debt-to-capital ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | — | — | — | — | — |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $239,000K)
= 0.00
The debt-to-capital ratio is a measure that indicates the proportion of a company's total debt in relation to its total capital (debt and equity). It reflects the extent to which a company relies on debt to finance its operations.
Based on the provided data for Frontdoor Inc, the debt-to-capital ratio was not available (denoted by "—") for the periods up to March 31, 2021. However, from June 30, 2021, to December 31, 2024, the debt-to-capital ratio consistently stood at 0.00.
A debt-to-capital ratio of 0.00 indicates that the company had no debt relative to its total capital during these periods. It suggests that Frontdoor Inc relied entirely on equity financing rather than debt to support its operations and investments. This low or zero debt-to-capital ratio can be viewed positively by investors and creditors, as it signifies a lower financial risk and less dependence on borrowed funds.
Overall, Frontdoor Inc's consistent debt-to-capital ratio of 0.00 from June 30, 2021, to December 31, 2024, may indicate a conservative financial strategy focused on maintaining a strong capital structure with a limited amount of debt, which could potentially enhance the company's financial stability and resilience.
Peer comparison
Dec 31, 2024