Frontdoor Inc (FTDR)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 352,000 | 355,000 | 318,000 | 288,000 | 270,000 | 265,000 | 206,000 | 154,000 | 123,000 | 117,000 | 178,000 | 192,000 | 200,000 | 201,000 | 170,000 | 180,000 | 195,000 | 221,000 | 242,000 | 263,000 |
| Interest expense (ttm) | US$ in thousands | 45,000 | 44,000 | 44,000 | 44,000 | 41,000 | 38,000 | 36,000 | 33,000 | 28,000 | 24,000 | 23,000 | 28,000 | 34,000 | 40,000 | 45,000 | 44,000 | 48,000 | 51,000 | 55,000 | 59,000 |
| Interest coverage | 7.82 | 8.07 | 7.23 | 6.55 | 6.59 | 6.97 | 5.72 | 4.67 | 4.39 | 4.88 | 7.74 | 6.86 | 5.88 | 5.02 | 3.78 | 4.09 | 4.06 | 4.33 | 4.40 | 4.46 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $352,000K ÷ $45,000K
= 7.82
Frontdoor Inc's interest coverage ratio has shown varying levels over the past several quarters. The interest coverage ratio is a measure of a company's ability to fulfill its interest obligations with its earnings before interest and taxes.
As of December 31, 2024, Frontdoor Inc's interest coverage ratio stood at 7.82, indicating the company's earnings before interest and taxes are 7.82 times the amount of interest payments due. This suggests that Frontdoor Inc has a strong ability to cover its interest payments from its operating profits.
Over the trend observed from March 31, 2020, to December 31, 2024, the interest coverage ratio has fluctuated within a range of 3.78 to 8.07. This indicates some variability in the company's ability to cover its interest expenses over the period.
Frontdoor Inc's interest coverage ratio has generally increased over the recent quarters, reaching a peak of 8.07 on September 30, 2024. This trend may suggest an improvement in the company's financial position and operating performance.
Overall, based on the data provided, Frontdoor Inc's interest coverage ratio has exhibited a positive trend, reflecting the company's improved ability to meet its interest obligations with its earnings before interest and taxes.
Peer comparison
Dec 31, 2024