Appfolio Inc (APPF)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 42,504 | 49,509 | 70,769 | 57,847 | 140,263 |
| Short-term investments | US$ in thousands | 235,745 | 162,196 | 89,297 | 64,600 | 28,256 |
| Total current liabilities | US$ in thousands | 63,280 | 69,766 | 61,343 | 52,642 | 49,805 |
| Cash ratio | 4.40 | 3.03 | 2.61 | 2.33 | 3.38 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($42,504K
+ $235,745K)
÷ $63,280K
= 4.40
Based on the provided data, the cash ratio of Appfolio Inc has shown some fluctuations over the past five years. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents.
In December 2020, Appfolio Inc had a cash ratio of 3.38, indicating that the company had $3.38 in cash and cash equivalents for every $1 of short-term liabilities. This suggests a strong liquidity position at that time.
However, by December 2021, the cash ratio had decreased to 2.33, signaling a decrease in the company's ability to cover its short-term obligations solely with cash and cash equivalents. This could indicate a potential strain on liquidity.
In the following years, the cash ratio improved to 2.61 in December 2022, 3.03 in December 2023, and significantly increased to 4.40 in December 2024. These improvements suggest that Appfolio Inc enhanced its liquidity position, with a higher ability to meet short-term liabilities using cash resources.
Overall, the trend in Appfolio Inc's cash ratio indicates some variability in its liquidity over the years, with fluctuations suggesting changes in the company's cash and cash equivalents relative to its short-term obligations.
Peer comparison
Dec 31, 2024