Frontdoor Inc (FTDR)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | — | — |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $136,000K
= 0.00
Frontdoor Inc.'s debt-to-equity ratio has exhibited significant fluctuations over the past five years. The ratio stood at 4.34 at the end of 2023, which indicates that for every dollar of equity, the company has $4.34 in debt. This suggests a moderate level of leverage.
In contrast, the ratio spiked to 9.98 at the end of 2022 and soared dramatically to 208.33 at the end of 2021. These exceptionally high ratios indicate that the company was highly leveraged during these periods, with a substantial amount of debt relative to equity.
It is noteworthy that the data is not available for 2020 and 2019, which limits the ability to assess the trend more comprehensively. However, the significant fluctuations in the debt-to-equity ratio over the available years suggest that Frontdoor Inc. has managed its capital structure in a manner that varied between moderate and high leverage levels, potentially impacting its financial risk and cost of capital.
Peer comparison
Dec 31, 2023