Frontdoor Inc (FTDR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,089,000 | 1,082,000 | 1,069,000 | 1,405,000 | 1,250,000 |
| Total stockholders’ equity | US$ in thousands | 136,000 | 61,000 | 2,000 | -61,000 | -179,000 |
| Financial leverage ratio | 8.01 | 17.74 | 534.50 | — | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,089,000K ÷ $136,000K
= 8.01
Frontdoor Inc.'s financial leverage ratio has shown a significant downward trend from 356.33 in 2021 to 7.95 in 2023. This implies that the company has been reducing its reliance on debt to finance its operations and investments, indicating improved financial stability and risk management. The sharp decrease in the financial leverage ratio indicates a healthier balance sheet structure as the company has likely paid down debt or increased equity in its capital structure. This trend suggests that Frontdoor Inc. has been more effectively managing its capital structure and debt levels over the years, which may enhance its overall financial health and sustainability.
Peer comparison
Dec 31, 2023