Appfolio Inc (APPF)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	794,202	627,476	477,223	360,251	495,865
Property, plant and equipment	US$ in thousands	24,483	28,362	26,110	30,479	26,439
Fixed asset turnover		32.44	22.12	18.28	11.82	18.76

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $794,202K ÷ $24,483K
= 32.44

The fixed asset turnover ratio for Appfolio Inc has exhibited significant fluctuations over the years, reflecting changes in the efficiency of the company's utilization of its fixed assets to generate revenue.

In 2020, the fixed asset turnover ratio stood at a remarkable 18.76, indicating that for each dollar invested in fixed assets, the company generated $18.76 in revenue. The high ratio suggests a highly efficient use of fixed assets during this period.

However, in 2021, there was a noticeable decline in the fixed asset turnover ratio to 11.82. This decrease may imply either a reduction in sales relative to fixed asset investments or an increase in the book value of fixed assets.

Subsequently, the ratio experienced a recovery in 2022, reaching 18.28, and continued to improve in 2023 to 22.12. These increases suggest a more effective utilization of fixed assets to generate revenue during these years.

Finally, in 2024, the fixed asset turnover ratio peaked at 32.44, signifying a substantial improvement in the efficiency of the company's fixed asset management and revenue generation capabilities.

In conclusion, the fluctuating trend of the fixed asset turnover ratio for Appfolio Inc indicates varying levels of efficiency in utilizing fixed assets to drive sales and revenue over the years, with a notable improvement observed in recent years.