Appfolio Inc (APPF)

Short-term

Turnover ratios

Appfolio Inc's activity ratios provide insights into how efficiently the company manages its resources.

1. Receivables Turnover: This ratio reveals how many times a year the company collects its accounts receivable. Appfolio's receivables turnover has shown fluctuation over the years, ranging from 21.63 to 32.74. A higher turnover indicates a more efficient collection process.

2. Payables Turnover: This ratio reflects how well the company manages its payments to suppliers. Appfolio's payables turnover has varied significantly, from 61.89 to 921.64, indicating fluctuations in the company's payment practices.

3. Working Capital Turnover: This ratio measures how efficiently the company utilizes its working capital to generate sales. Appfolio's working capital turnover has ranged from 2.06 to 5.18, indicating varying levels of efficiency in utilizing working capital to support operations.

Overall, Appfolio's activity ratios suggest fluctuations in the efficiency of managing receivables, payables, and working capital over the years. Monitoring these ratios can help assess the company's operational efficiency and identify areas for improvement in managing its resources.

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Average number of days

Based on the provided data, let's analyze the activity ratios of Appfolio Inc:

1. Days of Inventory on Hand (DOH):
- Unfortunately, the data for the days of inventory on hand is not provided in the given information. Without this information, it is not possible to evaluate how efficiently the company manages its inventory.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding show the average number of days it takes for the company to collect payment after making a sale.
- Over the periods from March 2020 to December 2024, the DSO fluctuated between 11.15 days to 16.88 days.
- A lower DSO indicates that the company is efficient in collecting payments, while a higher DSO may suggest issues with credit policies or collections.

3. Number of Days of Payables:
- The number of days of payables measures how long it takes for the company to pay its suppliers.
- Appfolio Inc managed to decrease its payables days from 5.90 days in June 2020 to 0.40 days in September 2024.
- A decreasing trend in payables days may indicate better negotiation with suppliers or an improvement in cash management.

In conclusion, while the information provided lacks details on inventory management, it is evident that Appfolio Inc has shown some improvements in managing its days of sales outstanding and days of payables over the periods observed. This suggests a focus on improving working capital efficiency and potentially cash flow management.

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Long-term

Appfolio Inc's fixed asset turnover has shown a significant increasing trend over the years, starting at 11.97 in March 2020 and reaching 32.56 by December 2024. This indicates that the company has been effectively utilizing its fixed assets to generate revenue. The consistency of this upward trend suggests that the company has been successful in optimizing its fixed asset investments for operational efficiency and profitability.

In contrast, the total asset turnover ratio has fluctuated over the same period. It started at 0.92 in March 2020, decreased to 0.78 in September 2020, and then gradually increased to 1.27 by December 2024. This fluctuation could indicate varying levels of efficiency in utilizing all assets, not just fixed assets, to generate sales. The improvement in the total asset turnover ratio over time suggests that the company has been able to increase its sales relative to its total asset base.

Overall, both the fixed asset turnover and total asset turnover ratios indicate that Appfolio Inc has generally been efficient in utilizing its assets to generate revenue, with the fixed asset turnover ratio showing a more consistent improvement over the years compared to the total asset turnover ratio.