Appfolio Inc (APPF)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	627,476	477,223	360,251	495,865	254,358
Property, plant and equipment	US$ in thousands	28,362	26,110	30,479	26,439	14,744
Fixed asset turnover		22.12	18.28	11.82	18.76	17.25

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $627,476K ÷ $28,362K
= 22.12

The fixed asset turnover ratio of Appfolio Inc has exhibited fluctuations over the past five years. The ratio increased significantly from 2019 to 2020, indicating that the company generated more revenue relative to its fixed assets during that period. However, in 2021, the ratio decreased substantially, suggesting a lower efficiency in generating revenue from fixed assets.

The year 2022 witnessed an improvement in the fixed asset turnover ratio compared to 2021, although it did not reach the level seen in 2020. Surprisingly, in 2023, Appfolio Inc achieved a remarkable increase in fixed asset turnover to 22.12, signifying a considerable enhancement in the efficiency of generating revenue from fixed assets. This substantial increment reflects positively on the company's ability to utilize its fixed assets effectively to generate sales revenue.

Overall, the trend of the fixed asset turnover ratio for Appfolio Inc indicates fluctuations over the years, with the company experiencing both increases and decreases in efficiency in utilizing its fixed assets to generate revenue. The significant improvement seen in 2023 is particularly noteworthy, showcasing a potentially positive operational performance in terms of fixed asset utilization.