Appfolio Inc (APPF)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — |
| Days of sales outstanding (DSO) | days | 11.19 | 16.12 | 12.62 | 12.76 | 7.40 |
| Number of days of payables | days | 1.73 | 0.87 | 2.12 | 2.23 | 1.65 |
| Cash conversion cycle | days | 9.45 | 15.25 | 10.51 | 10.53 | 5.75 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 11.19 – 1.73
= 9.45
Appfolio Inc's cash conversion cycle has been fluctuating over the years. Starting at 5.75 days on December 31, 2020, it increased to 10.53 days by December 31, 2021, and slightly decreased to 10.51 days by December 31, 2022. However, there was a notable jump to 15.25 days by December 31, 2023, before improving to 9.45 days by December 31, 2024.
The cash conversion cycle represents the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales. A shorter cash conversion cycle indicates more efficiency in managing working capital and generating cash. In contrast, a longer cycle may suggest liquidity challenges or inefficiencies in the company's operations or supply chain.
Appfolio Inc's varying cash conversion cycle values indicate changes in its working capital management efficiency and effectiveness in converting assets into cash. Monitor trends in this metric over time to assess the company's operational performance and financial health.
Peer comparison
Dec 31, 2024