Appfolio Inc (APPF)

Working capital 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
Total current assets US$ in thousands 335,402 395,143 348,797 306,666 272,357 239,877 209,482 211,878 201,468 176,794 156,383 169,574 158,595 197,376 189,867 181,452 199,353 201,853 102,744 92,710
Total current liabilities US$ in thousands 63,280 63,697 63,349 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
Working capital turnover 2.93 2.32 2.55 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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $797,194K ÷ ($335,402K – $63,280K)
= 2.93

Appfolio Inc's working capital turnover has fluctuated over the reported period. The trend shows an initial increase from March 2020 to June 2020, reaching a peak of 5.18, indicating the company's ability to efficiently utilize its working capital to generate sales. However, there was a significant decline in the following quarters, with the ratio dropping to 2.06 by December 2020 and remaining relatively low through the first half of 2021.

Subsequently, there was a gradual improvement in the working capital turnover from September 2021 to June 2022, indicating improved efficiency in working capital management. The ratio peaked at 4.08 in June 2022, reflecting a more effective use of working capital to drive sales. However, there was a slight decrease in the ratio in the following quarters, stabilizing around 3.00 from December 2022 to March 2024.

Overall, Appfolio Inc's working capital turnover demonstrates fluctuations but generally shows an ability to optimize working capital to support revenue generation. It is essential for the company to continue monitoring and managing its working capital efficiency to sustain operational performance and financial health.