Frontdoor Inc (FTDR)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — | — | — | — | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | 0.00 | 0.00 | 0.00 | — | — | — | — | — | — | — | — | — |
| Financial leverage ratio | 8.01 | 6.83 | 8.67 | 13.59 | 17.74 | 23.30 | 179.33 | — | 534.50 | 18.73 | 378.33 | — | — | — | — | — | — | — | — | — |
Frontdoor Inc.'s solvency ratios provide insights into the company's ability to meet its financial obligations and the level of financial risk it carries. The debt-to-assets ratio, which measures the proportion of a company's assets financed by debt, has been relatively stable around 0.55 to 0.56 in the most recent quarters. This indicates that approximately 55-56% of the company's assets are funded by debt.
The debt-to-capital ratio, which shows the proportion of a company's capital that is contributed by debt, has shown a slight decline from 0.91 in Q4 2022 to 0.81 in Q4 2023. This suggests that the company has been relying less on debt financing compared to its total capital structure.
The debt-to-equity ratio, which indicates the extent to which the company is financed by debt relative to shareholders' equity, has fluctuated significantly over the quarters, with values ranging from 3.51 to 102.83. The increase in this ratio indicates a higher level of financial risk for the company, particularly in Q1 2022 and Q2 2022 when the ratio spiked to exceptionally high levels.
The financial leverage ratio, which measures the company's total assets relative to its equity, has also shown fluctuations over time, with the ratio ranging from 6.88 to 179.33. A higher financial leverage ratio indicates a higher level of financial risk due to increased reliance on debt to fund its operations.
Overall, Frontdoor Inc.'s solvency ratios suggest a varying degree of reliance on debt financing and a fluctuating level of financial risk over the quarters. Investors and stakeholders should closely monitor these ratios to assess the company's financial health and risk profile.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.70 | 6.74 | 5.54 | 4.47 | 4.00 | 4.17 | 6.50 | 6.00 | 5.28 | 4.52 | 3.38 | 3.51 | 3.61 | 3.97 | 4.15 | 4.27 | 4.24 | 4.17 | 4.38 |
For Frontdoor Inc., the interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio signifies that the company is better able to cover its interest expenses from its operating profits.
Analyzing the trend of Frontdoor Inc.'s interest coverage ratio over the past eight quarters, we observe fluctuations in the ratio. The interest coverage ratio ranged from a low of 5.00 in Q4 2022 to a high of 8.90 in Q3 2023. This variability indicates changes in the company's ability to cover its interest payments over time.
In Q3 2023, the interest coverage ratio peaked at 8.90, indicating a significant improvement in the company's ability to meet its interest expenses. This could be attributed to higher operating income relative to interest expense during that period. Conversely, in Q4 2022, the interest coverage ratio was at its lowest at 5.00, which suggests a reduced ability to cover interest payments compared to other quarters.
Overall, Frontdoor Inc.'s interest coverage ratio has shown some volatility, but it has generally remained above 5.00, indicating that the company has been able to comfortably meet its interest obligations. However, management should continue to monitor this ratio closely to ensure that the company remains financially stable and able to cover its interest expenses in the long term.