Appfolio Inc (APPF)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	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	254,358	237,843	220,663
Property, plant and equipment	US$ in thousands	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	14,744	9,842	7,930
Fixed asset turnover		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	17.25	24.17	27.83

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $680,437K ÷ $27,709K
= 24.56

The fixed asset turnover ratio for Appfolio Inc has fluctuated over the past few quarters. The ratio measures the company's ability to generate revenue from its fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets efficiently to generate sales.

From the data provided, we can observe that the fixed asset turnover ratio has generally been on an upward trend from 2019 to the first quarter of 2020, which suggests an improvement in the company's efficiency in utilizing its fixed assets to generate revenue. However, there was a significant decline in the ratio in the second quarter of 2020, followed by fluctuations in subsequent quarters.

It is important to note that a very high fixed asset turnover ratio could indicate a company's over-reliance on fixed assets or aggressive management of its fixed assets, which may not always be sustainable or desirable for long-term growth. On the other hand, a low fixed asset turnover ratio may signal underutilization of fixed assets, leading to inefficiencies in the company's operations.

Overall, a detailed analysis of the company's operating performance, investment strategies, and industry trends is necessary to fully interpret the implications of the fixed asset turnover ratio fluctuations observed in the financial data provided.