Appfolio Inc (APPF)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Days of sales outstanding (DSO)	days	14.04	16.12	12.86	13.64	12.58	12.73	12.23	14.23	15.26	12.77	13.22	16.88	14.50	11.91	11.35	16.10	13.01	10.85	12.34	13.53
Number of days of payables	days	1.19	0.84	1.05	1.22	0.56	2.10	1.30	1.32	5.78	2.23	3.50	3.53	3.43	1.65	5.86	5.90	4.55	3.65	3.16	3.52
Cash conversion cycle	days	12.86	15.28	11.81	12.42	12.02	10.63	10.92	12.91	9.48	10.55	9.72	13.35	11.07	10.26	5.49	10.20	8.46	7.21	9.18	10.02

March 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 14.04 – 1.19
= 12.86

The cash conversion cycle of Appfolio Inc has shown some fluctuations over the past several quarters. The trend indicates that the company has been able to efficiently manage its working capital in recent periods, as reflected in the decreasing trend from Dec 31, 2020, to Sep 30, 2020. This improvement suggests that the company may be collecting receivables quicker, managing inventory effectively, and utilizing payables strategically.

However, the cycle increased in the most recent quarter, Mar 31, 2024, compared to the previous quarter. This increase may indicate that there could be some challenges in managing working capital efficiently, potentially due to a delay in collecting receivables or an increase in the days inventory is held.

It is crucial for the company to closely monitor and manage its cash conversion cycle to ensure optimal cash flow and operational efficiency. Further analysis of the underlying factors driving the changes in the cycle would provide more insights into the company's working capital management and overall financial performance.