Appfolio Inc (APPF)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — |
| Receivables turnover | 32.62 | 22.65 | 28.92 | 28.60 | 49.31 |
| Payables turnover | 210.38 | 421.47 | 172.44 | 163.75 | 221.01 |
| Working capital turnover | 2.92 | 3.10 | 3.41 | 3.40 | 3.32 |
Appfolio Inc's activity ratios provide insight into how efficiently the company manages its assets and liabilities.
1. Receivables Turnover: This ratio indicates how many times a company collects its accounts receivable during a specific period. Appfolio Inc's receivables turnover has fluctuated over the years, with a peak of 49.31 in 2020 and a low of 22.65 in 2023. A higher turnover ratio suggests that Appfolio is efficient in collecting payments from its customers, while a lower ratio may indicate potential issues with collecting receivables.
2. Payables Turnover: The payables turnover ratio reflects how quickly a company pays its suppliers. Appfolio Inc's payables turnover has also varied, with the highest ratio of 421.47 in 2023 and the lowest of 163.75 in 2021. A higher turnover ratio suggests that the company is managing its payables well by paying its obligations quickly, while a lower ratio may indicate longer payment periods or potential liquidity issues.
3. Working Capital Turnover: This ratio measures how effectively a company utilizes its working capital to generate revenue. Appfolio Inc's working capital turnover ratio has been relatively stable over the years, ranging from 2.92 to 3.41. A higher turnover ratio implies that the company efficiently utilizes its working capital to drive sales, while a lower ratio may indicate inefficiencies in capital utilization.
Overall, analyzing activity ratios like receivables turnover, payables turnover, and working capital turnover helps assess Appfolio Inc's operational efficiency and management of working capital, receivables, and payables.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 11.19 | 16.12 | 12.62 | 12.76 | 7.40 |
| Number of days of payables | days | 1.73 | 0.87 | 2.12 | 2.23 | 1.65 |
Appfolio Inc's activity ratios provide insights into how efficiently the company manages its inventory, collects receivables, and pays its payables.
1. Days of Inventory on Hand (DOH): The data indicates that the company did not provide specific information on the days of inventory on hand for the years 2020 through 2024. DOH measures how many days, on average, it takes for the company to sell its inventory. Without this information, it is challenging to evaluate the efficiency of the company's inventory management.
2. Days of Sales Outstanding (DSO): The DSO figures show the number of days it takes for the company to collect payment from its customers. An increase in DSO over the years can suggest a deterioration in the company's accounts receivable management efficiency. Appfolio Inc's DSO increased from 7.40 days in 2020 to 11.19 days in 2024, indicating a slight delay in collecting payments from customers.
3. Number of Days of Payables: This ratio measures how long it takes the company to pay its suppliers. A decrease in the number of days of payables may indicate improved supplier relationships or on-time payments. Appfolio Inc's number of days of payables decreased from 1.65 days in 2020 to 1.73 days in 2024, with a slight fluctuation in between.
In conclusion, the analysis of Appfolio Inc's activity ratios suggests that the company experienced a slight delay in collecting receivables over the years but maintained relatively stable payables cycles. The absence of specific information on inventory turnover makes it challenging to assess the efficiency of the company's inventory management practices.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 32.44 | 22.12 | 18.28 | 11.82 | 18.76 |
| Total asset turnover | 1.27 | 1.53 | 1.25 | 0.88 | 1.27 |
Appfolio Inc's fixed asset turnover ratio has shown fluctuations over the years, starting at 18.76 in December 2020, decreasing to 11.82 in December 2021, and then experiencing an upward trend to 32.44 by December 2024. This indicates that the company's ability to generate sales from its fixed assets improved significantly over time, reaching its peak in 2024.
In contrast, the total asset turnover ratio reveals a different pattern, with a decrease from 1.27 in December 2020 to 0.88 in December 2021 before recovering and increasing to 1.53 by December 2023. However, by December 2024, the total asset turnover ratio dropped back to 1.27. Overall, this ratio suggests that the company's efficiency in generating sales from all assets fluctuated during the period under review.
In summary, Appfolio Inc experienced varying levels of efficiency in utilizing both fixed and total assets to generate sales over the years, with the fixed asset turnover ratio showing more consistent improvement compared to the total asset turnover ratio. Further analysis would be needed to understand the factors driving these fluctuations in activity ratios.