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Frontdoor (Frontdoor) Debt-to-EBITDA : 4.92 (As of Dec. 2023)


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Debt-to-EBITDA measures a company's ability to pay off its debt.

Frontdoor's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $17 Mil. Frontdoor's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $593 Mil. Frontdoor's annualized EBITDA for the quarter that ended in Dec. 2023 was $124 Mil. Frontdoor's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 was 4.92.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Frontdoor's Debt-to-EBITDA or its related term are showing as below:

FTDR' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.04   Med: 3.05   Max: 4.69
Current: 1.99

During the past 9 years, the highest Debt-to-EBITDA Ratio of Frontdoor was 4.69. The lowest was 0.04. And the median was 3.05.

FTDR's Debt-to-EBITDA is ranked better than
70.89% of 79 companies
in the Personal Services industry
Industry Median: 3.81 vs FTDR: 1.99

Frontdoor Debt-to-EBITDA Historical Data

The historical data trend for Frontdoor's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Frontdoor Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only 3.45 4.12 2.66 3.97 1.99

Frontdoor Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.03 3.24 1.38 1.32 4.92

Competitive Comparison

For the Personal Services subindustry, Frontdoor's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Frontdoor Debt-to-EBITDA Distribution

For the Personal Services industry and Consumer Cyclical sector, Frontdoor's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Frontdoor's Debt-to-EBITDA falls into.



Frontdoor Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Frontdoor's Debt-to-EBITDA for the fiscal year that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(17 + 593) / 306
=1.99

Frontdoor's annualized Debt-to-EBITDA for the quarter that ended in Dec. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(17 + 593) / 124
=4.92

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Dec. 2023) EBITDA data.


Frontdoor  (NAS:FTDR) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Frontdoor Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Frontdoor's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Frontdoor (Frontdoor) Business Description

Traded in Other Exchanges
Address
3400 Players Club Parkway, Memphis, TN, USA, 38125
Frontdoor Inc is a United States-based company that provides home service plans. It owns multiple home service brands including American Home Shield, HSA, OneGuard, and Landmark brands. Through its home service plans, the company helps its customers maintain their homes and protect against costly and unexpected breakdowns of essential home systems and appliances.
Executives
Jeffrey Fiarman officer: Sr VP, Gen Counsel & Secretary 150 PEABODY PLACE, MEMPHIS TN 38103
Lara Balazs director 3400 PLAYERS CLUB PARKWAY, STE. 300, MEMPHIS TN 38125
Balakrishnan A Ganesh director 3400 PLAYERS CLUB PARKWAY, STE. 300, MEMPHIS TN 38125
Jessica P Ross officer: SVP & CFO 3400 PLAYERS CLUB PARKWAY, STE. 300, MEMPHIS TN 38103
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
Peter L. Cella director 150 PEABODY PLACE, MEMPHIS TN 38103-3720
William C Cobb director H&R BLOCK, INC., ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Christopher L Clipper director 150 PEABODY PLACE, MEMPHIS TN 38103
Darrin Steve Boland director 100 NORTH TRYON STREET, CHARLOTTE NC 28255
Chastitie Brim officer: Vice Pres, Controller & CAO 150 PEABODY PLACE, MEMPHIS TN 38103
Brian P Mcandrews director C/O PANDORA MEDIA, INC, 2101 WEBSTER STREET, #1650, OAKLAND CA 94612
Richard P Fox director
Liane J Pelletier director 10700 NE 4TH STREET # 4004, BELLEVUE WA 98004
Servicemaster Co, Llc 10 percent owner 860 RIDGE LAKE BOULEVARD, MEMPHIS TN 38120
Servicemaster Global Holdings Inc 10 percent owner 150 PEABODY PLACE, MEMPHIS TN 38103-3720