Appfolio Inc (APPF)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	627,476	477,223	360,251	495,865	254,358
Total current assets	US$ in thousands	272,357	201,468	158,595	199,353	61,791
Total current liabilities	US$ in thousands	69,766	61,343	52,642	49,805	47,465
Working capital turnover		3.10	3.41	3.40	3.32	17.75

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $627,476K ÷ ($272,357K – $69,766K)
= 3.10

The working capital turnover ratio for Appfolio Inc has shown a decreasing trend over the past five years, indicating a slight decline in the efficiency of its working capital management. In 2019, the working capital turnover was significantly higher at 17.75, which may suggest a more efficient utilization of working capital compared to the subsequent years.

However, in the years following 2019, the ratio fluctuated within a narrower range between 3.10 and 3.41, indicating a more stable but slightly less efficient utilization of working capital. The slight decline in the ratio over the years may be attributed to changes in the company's operations, investment decisions, or financing activities affecting its working capital management efficiency.

Overall, the working capital turnover ratio of Appfolio Inc has remained relatively consistent in recent years, suggesting a maintained level of efficiency in converting working capital into revenue. However, the company may benefit from assessing and enhancing its working capital management practices to improve operational efficiency and financial performance.