Appfolio Inc (APPF)

Payables 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
Cost of revenue (ttm)	US$ in thousands	470,695	495,718	469,343	458,967	480,848	428,810	422,291	370,548	303,515	279,123	260,283	249,379	240,553	229,854	223,505	210,534	201,295	192,948	177,963	163,946
Payables	US$ in thousands	1,531	1,141	1,350	1,532	740	2,473	1,508	1,338	4,809	1,704	2,493	2,411	2,262	1,040	3,591	3,402	2,509	1,927	1,539	1,579
Payables turnover		307.44	434.46	347.66	299.59	649.79	173.40	280.03	276.94	63.11	163.80	104.41	103.43	106.35	221.01	62.24	61.89	80.23	100.13	115.64	103.83

March 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $470,695K ÷ $1,531K
= 307.44

Appfolio Inc's payables turnover ratio has displayed varying trends over the past several quarters. The payables turnover ratio measures how efficiently a company manages its accounts payable by calculating the number of times a company pays off its average accounts payable balance within a specific period.

In the most recent quarter, as of March 31, 2024, Appfolio Inc's payables turnover ratio was 307.44, which indicates that the company paid off its accounts payable balance approximately 307.44 times during that quarter. This high ratio could imply that the company is efficiently managing its payables by quickly converting them into cash or reducing the time it takes to settle outstanding obligations.

However, it is essential to analyze the trend of the payables turnover ratio over multiple quarters to gain a more comprehensive understanding. The data reveals fluctuations in the ratio, with significant variations observed from quarter to quarter. For example, the ratio ranged from a low of 62.24 in September 2020 to a high of 649.79 in March 2023.

The fluctuations in the payables turnover ratio could be influenced by various factors such as changes in payment terms with suppliers, shifts in procurement strategies, or alterations in the company's working capital management practices. It is crucial for stakeholders to closely monitor these fluctuations and understand the reasons behind the changes to assess Appfolio Inc's efficiency in managing its payables effectively.

Overall, while the payables turnover ratio can provide insights into Appfolio Inc's management of its accounts payable, it is important to consider this ratio in conjunction with other financial metrics and qualitative factors to form a comprehensive evaluation of the company's financial performance and operational efficiency.