Frontdoor Inc (FTDR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | — | — | — | — | — |
| 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 | — | — | — | — | — |
Frontdoor Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets over the period analyzed, as reflected in a debt-to-assets ratio of 0.00 for each reporting period. The debt-to-capital and debt-to-equity ratios also demonstrate a stable financial structure, with values of 0.00 indicating that the company's capital is primarily funded by equity rather than debt.
The financial leverage ratio initially showed a spike in June 2021, but this ratio has been decreasing steadily since then. The decreasing trend indicates that Frontdoor Inc is reducing its reliance on debt to fund operations, which can lead to lower financial risk and improved solvency in the long run. By the end of December 2024, the financial leverage ratio had reduced significantly to a value of 8.82, signaling a healthier financial structure for the company.
Overall, Frontdoor Inc's solvency ratios suggest a conservative financial strategy focused on maintaining a strong balance sheet and mitigating excessive debt levels, which bodes well for its long-term financial health and stability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Frontdoor Inc's interest coverage ratio has shown some fluctuations over the past few years. The interest coverage ratio, which measures the company's ability to cover its interest expenses with its operating income, stood at 4.46 as of March 31, 2020, indicating that the company generated operating income 4.46 times larger than its interest expenses for that period.
The ratio remained relatively stable around the 4 to 5 range through September 30, 2021. However, there was a notable increase in interest coverage to 5.88 as of December 31, 2021, and a further improvement to 7.74 by June 30, 2022. This suggests that the company's operating income was more than sufficient to meet its interest obligations during these periods.
There was a slight decline in interest coverage to 4.39 by December 31, 2022, but the ratio improved to 7.23 by June 30, 2024, before reaching 7.82 by December 31, 2024. This pattern indicates that Frontdoor Inc's ability to cover its interest expenses strengthened towards the end of the period under review.
Overall, the trend in Frontdoor Inc's interest coverage ratio shows fluctuations with some periods of improvement and slight declines. It is essential for investors and stakeholders to continue monitoring this ratio to assess the company's ability to meet its interest obligations in the future.