Appfolio Inc (APPF)

Working capital 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
Total current assets	US$ in thousands	306,666	272,357	239,877	209,482	211,878	201,468	176,794	156,383	169,574	158,595	197,376	189,867	181,452	199,353	201,853	102,744	92,710	61,791	64,665	64,064
Total current liabilities	US$ in thousands	56,057	69,766	74,147	74,711	79,827	61,343	57,765	54,719	54,020	52,642	49,202	48,785	43,037	49,805	56,151	47,307	38,649	47,465	42,270	41,816
Working capital turnover		2.72	3.10	3.49	3.98	3.83	3.38	3.73	4.08	3.34	3.40	2.27	2.30	2.28	2.06	2.08	5.18	4.99	17.75	10.62	9.92

March 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $680,437K ÷ ($306,666K – $56,057K)
= 2.72

The working capital turnover of Appfolio Inc has shown fluctuations over the past few quarters, ranging from a low of 2.06 to a high of 5.18. The working capital turnover ratio measures how efficiently a company utilizes its working capital to generate revenue. A higher turnover ratio indicates that the company is effectively using its current assets to support sales.

In the most recent quarter, the working capital turnover stands at 2.72, which is lower compared to the previous quarter of 3.10. This may imply that the company's efficiency in utilizing its working capital to generate revenue has decreased slightly.

Looking at the trend over the past few quarters, we observe some variations in the working capital turnover, with some quarters showing significant improvements while others display a slight decline. It is important for the company to consistently monitor and manage its working capital effectively to maintain healthy liquidity and optimize operational efficiency.

Overall, the working capital turnover ratio of Appfolio Inc indicates varying levels of efficiency in utilizing its working capital to support revenue generation, and the company should continue to focus on optimizing its working capital management to drive sustainable growth and profitability.