Appfolio Inc (APPF)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Revenue (ttm)	US$ in thousands	797,194	767,764	729,259	680,437	627,476	577,852	536,077	505,125	473,067	444,385	414,806	386,300	359,871	336,457	323,816	315,202	308,229	302,747	287,049	269,765
Property, plant and equipment	US$ in thousands	24,483	25,478	26,700	27,709	28,362	27,132	26,635	25,789	26,110	27,633	28,270	30,582	30,479	28,177	27,324	26,530	26,439	26,565	26,323	22,536
Fixed asset turnover		32.56	30.13	27.31	24.56	22.12	21.30	20.13	19.59	18.12	16.08	14.67	12.63	11.81	11.94	11.85	11.88	11.66	11.40	10.90	11.97

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $797,194K ÷ $24,483K
= 32.56

Appfolio Inc's fixed asset turnover has shown a consistent upward trend over the analyzed period from March 31, 2020, to December 31, 2024. The fixed asset turnover ratio measures how efficiently a company generates revenue from its investment in fixed assets.

The ratio has increased from 11.97 on March 31, 2020, to 32.56 on December 31, 2024. This indicates that Appfolio Inc is generating significantly more sales for each dollar invested in fixed assets. A higher fixed asset turnover ratio is generally preferred as it signifies better asset utilization and operational efficiency.

The continuous improvement in the fixed asset turnover ratio suggests that Appfolio Inc has been effectively managing its fixed assets to generate revenue growth. This may be a result of improved operational processes, better asset utilization, or strategic investments in productive fixed assets.

Overall, the increasing trend in Appfolio Inc's fixed asset turnover ratio reflects positively on the efficiency and performance of the company in utilizing its fixed assets to drive revenue generation. It indicates a strong operational performance and effective management of assets over the analyzed period.