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FTDR (Frontdoor) Sloan Ratio % : 27.86% (As of Dec. 2024)


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What is Frontdoor Sloan Ratio %?

Richard Sloan from the University of Michigan was first to document what is referred to as the "accrual anomaly". His 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones.

Frontdoor's Sloan Ratio for the quarter that ended in Dec. 2024 was 27.86%.

Warning Sign:

When sloan ratio (27.86)% higher than 25% or lower than -25%, earnings are more likely to be made up of accruals.

As of Dec. 2024, Frontdoor has a Sloan Ratio of 27.86%, indicating earnings are more likely to be made up of accruals.


Frontdoor Sloan Ratio % Historical Data

The historical data trend for Frontdoor's Sloan Ratio % 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 Sloan Ratio % Chart

Frontdoor Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Sloan Ratio %
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.56 -2.43 -3.33 0.09 27.86

Frontdoor Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
Sloan Ratio % 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 0.09 -0.79 -2.75 -0.08 27.86

Competitive Comparison of Frontdoor's Sloan Ratio %

For the Personal Services subindustry, Frontdoor's Sloan Ratio %, along with its competitors' market caps and Sloan Ratio % 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's Sloan Ratio % Distribution in the Personal Services Industry

For the Personal Services industry and Consumer Cyclical sector, Frontdoor's Sloan Ratio % distribution charts can be found below:

* The bar in red indicates where Frontdoor's Sloan Ratio % falls into.


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Frontdoor Sloan Ratio % Calculation

Earnings contain a lot of non cash earnings which is called accruals. The Sloan ratio is a way to identify firms with low non-cash or accrual-derived earnings relative to their cash flow.

Frontdoor's Sloan Ratio for the fiscal year that ended in Dec. 2024 is calculated as

Sloan Ratio=(Net Income (A: Dec. 2024 )-Cash Flow from Operations (A: Dec. 2024 )
-Cash Flow from Investing (A: Dec. 2024 ))/Total Assets (A: Dec. 2024 )
=(235-270
--622)/2107
=27.86%

Frontdoor's Sloan Ratio for the quarter that ended in Dec. 2024 is calculated as

Sloan Ratio=(Net Income (TTM)-Cash Flow from Operations (TTM))
-Cash Flow from Investing (TTM))/Total Assets (Q: Dec. 2024 )
=(235-270
--622)/2107
=27.86%

Frontdoor's Net Income for the trailing twelve months (TTM) ended in Dec. 2024 was 34 (Mar. 2024 ) + 92 (Jun. 2024 ) + 100 (Sep. 2024 ) + 9 (Dec. 2024 ) = $235 Mil.
Frontdoor's Cash Flow from Operations for the trailing twelve months (TTM) ended in Dec. 2024 was 84 (Mar. 2024 ) + 103 (Jun. 2024 ) + 25 (Sep. 2024 ) + 58 (Dec. 2024 ) = $270 Mil.
Frontdoor's Cash Flow from Investing for the trailing twelve months (TTM) ended in Dec. 2024 was -10 (Mar. 2024 ) + -12 (Jun. 2024 ) + -9 (Sep. 2024 ) + -591 (Dec. 2024 ) = $-622 Mil.

* 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.


Frontdoor  (NAS:FTDR) Sloan Ratio % Explanation

A former University of Michigan researcher, Richard Sloan's 1996 paper found that shares of companies with small or negative accruals vastly outperform (+10%) those of companies with large ones. In fact, for the 40-year period between 1962 and 2001, buying the lowest accrual companies and shorting the highest accrual companies resulted in an average annual compounded return of 18%, more than double the S&P 500's 7.4% annual return over the same period.

According to How to Beat the Market with the Sloan Ratio:

If the Sloan Ratio is between -10% and 10%, the company is in the safe zone and there is no funny business with accruals.

If the Sloan Ratio is less than between -25% and -10% on the negative side, and between 10% and 25% on the positive side, this is a warning stage of accrual build up.

If the Sloan Ratio is less than -25% or greater than 25%, and this ratio is consistent over several quarters or even years, be careful. Earnings are highly likely to be made up of accruals.

As of Dec. 2024, Frontdoor has a Sloan Ratio of 27.86%, indicating earnings are more likely to be made up of accruals.


Frontdoor Sloan Ratio % Related Terms

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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
William C Cobb director H&R BLOCK, INC., ONE H&R BLOCK WAY, KANSAS CITY MO 64105
Chastitie Brim officer: Vice Pres, Controller & CAO 150 PEABODY PLACE, MEMPHIS TN 38103
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
Peter L. Cella director 150 PEABODY PLACE, MEMPHIS TN 38103-3720
Anna C Catalano director 1313 NORTH MARKET STREET, WILMINGTON DE 19894
Darrin Steve Boland director 100 NORTH TRYON STREET, CHARLOTTE NC 28255
Christopher L Clipper director 150 PEABODY PLACE, MEMPHIS TN 38103
Richard P Fox director
Brian P Mcandrews director C/O PANDORA MEDIA, INC, 2101 WEBSTER STREET, #1650, OAKLAND CA 94612
Liane J Pelletier director 10700 NE 4TH STREET # 4004, BELLEVUE WA 98004
Rexford Tibbens director, officer: President & CEO 150 PEABODY PLACE, MEMPHIS TN 38103
Brian K Turcotte officer: Sr. V.P. & C.F.O. 150 PEABODY PLACE, MEMPHIS TN 38103-3720