Appfolio Inc (APPF)

Receivables 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
Receivables	US$ in thousands	24,346	25,581	25,691	26,179	27,709	20,359	20,033	17,416	16,503	14,884	16,175	16,154	12,595	12,184	14,973	12,524	10,057	9,416	12,663	9,617
Receivables turnover		32.74	30.01	28.39	25.99	22.65	28.38	26.76	29.00	28.67	29.86	25.64	23.91	28.57	27.61	21.63	25.17	30.65	32.15	22.67	28.05

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $797,194K ÷ $24,346K
= 32.74

The receivables turnover ratio is calculated by dividing the net credit sales by the average accounts receivable for a specific period. This ratio indicates how efficiently a company is managing its accounts receivable and collecting cash from its customers.

Analyzing the data provided for Appfolio Inc's receivables turnover from March 31, 2020, to December 31, 2024, we observe fluctuations in the ratio over time. The receivables turnover ratio ranged between a low of 21.63 on June 30, 2021, and a high of 32.74 on December 31, 2024.

A higher receivables turnover ratio generally indicates that a company is collecting its accounts receivable more quickly, which is a positive sign of efficient management. On the other hand, a lower ratio may suggest potential issues with collecting payments from customers or extending credit terms for too long.

Appfolio Inc's receivables turnover ratio has shown variability over the years, with some periods of improvement and slight declines. It is essential for the company to monitor this ratio closely to ensure effective management of accounts receivable and optimize cash flow.