Appfolio Inc (APPF)

Days of sales outstanding (DSO)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Receivables turnover		25.99	22.65	28.38	26.76	29.00	28.67	29.86	25.64	23.91	28.57	27.61	21.63	25.17	30.65	32.15	22.67	28.05	33.64	29.59	26.98
DSO	days	14.04	16.12	12.86	13.64	12.58	12.73	12.23	14.23	15.26	12.77	13.22	16.88	14.50	11.91	11.35	16.10	13.01	10.85	12.34	13.53

March 31, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 25.99
= 14.04

Appfolio Inc's Days Sales Outstanding (DSO) is a metric that measures how long on average it takes the company to collect its accounts receivable. A lower DSO indicates that the company is collecting payments more quickly, which is generally favorable as it reduces the company's exposure to bad debts and improves cash flow.

Analyzing the trend in Appfolio's DSO over the past several quarters, we observe fluctuations in the metric. The DSO for Appfolio Inc ranged from a low of 10.85 days to a high of 16.88 days over the past five quarters. Overall, the DSO has shown a mixed trend without a clear pattern.

In the most recent quarter, the DSO stands at 14.04 days, reflecting a moderate increase from the previous quarter's 12.58 days. While the increase in DSO may indicate a slight delay in collecting receivables, it is important to compare this figure with industry averages and competitors to assess Appfolio's performance in managing its accounts receivable effectively.

Further analysis of the underlying factors contributing to the changes in DSO, such as changes in sales patterns, credit terms, customer payment behaviors, or collection processes, would provide more insights into Appfolio Inc's revenue cycle efficiency. Overall, Appfolio Inc's DSO reflects its ability to manage receivables but may require close monitoring to ensure efficient cash flow management in the future.