Frontdoor Inc (FTDR)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,107,000 | 1,217,000 | 1,200,000 | 1,146,000 | 1,089,000 | 1,168,000 | 1,136,000 | 1,128,000 | 1,082,000 | 1,095,000 | 1,076,000 | 1,058,000 | 1,069,000 | 1,161,000 | 1,135,000 | 1,355,000 | 1,405,000 | 1,407,000 | 1,361,000 | 1,291,000 |
| 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 |
| Financial leverage ratio | 8.82 | 4.66 | 5.61 | 7.07 | 7.95 | 6.87 | 8.67 | 13.59 | 17.74 | 22.81 | 179.33 | — | 356.33 | 18.73 | 567.50 | — | — | — | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,107,000K ÷ $239,000K
= 8.82
The financial leverage ratio measures the extent to which a company is utilizing debt to finance its operations. A higher financial leverage ratio indicates a greater reliance on debt, which can increase financial risk but also potentially enhance returns.
Based on the provided data for Frontdoor Inc, the financial leverage ratio has shown fluctuations over the reporting periods.
The financial leverage ratio was not available or not calculable in the financial statements for the quarters ending in March, June, September, and December of 2020 and March 2021.
From June 2021 to September 2022, Frontdoor Inc experienced a significant increase in its financial leverage ratio, reaching a peak of 567.50 in June 2021 before declining to 4.66 by September 2024.
The decreasing trend from June 2021 to September 2024 indicates a potential reduction in the company's reliance on debt to support its operations. This may signal a shift towards a more balanced capital structure or improved financial stability.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's risk profile and financial health. Additionally, a prudent level of financial leverage should be maintained to ensure sustainable growth and mitigate the risks associated with high debt levels.
Peer comparison
Dec 31, 2024