Frontdoor Inc (FTDR)
Debt-to-capital ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 136,000 | 171,000 | 131,000 | 83,000 | 61,000 | 47,000 | 6,000 | -20,000 | 2,000 | 62,000 | 3,000 | -46,000 | -61,000 | -71,000 | -125,000 | -178,000 | -179,000 | -219,000 | -278,000 | -334,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $136,000K)
= 0.00
The debt-to-capital ratio of Frontdoor Inc. has been fluctuating over the past eight quarters. The ratio represents the proportion of a company's total debt to its total capital, which includes both debt and equity.
From Q1 2022 to Q4 2023, the debt-to-capital ratio has been on a downward trend, decreasing from 1.03 to 0.81. This indicates that the company has been reducing its reliance on debt in relation to its total capital over this period.
While the ratio decreased overall, there were fluctuations in between, with the ratio hitting a low of 0.78 in Q3 2023 and peaking at 0.91 in Q4 2022. These fluctuations suggest that the company's capital structure has been changing, with variations in the amount of debt relative to total capital.
Overall, a decreasing debt-to-capital ratio can be seen as a positive sign, as it may indicate improved financial stability and lower financial risk for Frontdoor Inc. However, further analysis is recommended to understand the specific reasons behind these fluctuations and their implications for the company's financial health.
Peer comparison
Dec 31, 2023