Appfolio Inc (APPF)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	59,214	49,509	59,937	24,698	103,925	70,769	67,232	42,626	49,536	57,847	84,444	48,610	44,744	140,263	144,028	53,315	56,779	15,813	20,121	19,514
Short-term investments	US$ in thousands	184,298	162,196	131,589	139,273	65,022	89,297	72,018	75,425	78,389	64,600	76,034	102,978	103,341	28,256	32,689	20,930	7,952	22,876	20,355	19,425
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
Cash ratio		4.34	3.03	2.58	2.19	2.12	2.61	2.41	2.16	2.37	2.33	3.26	3.11	3.44	3.38	3.15	1.57	1.67	0.82	0.96	0.93

March 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($59,214K + $184,298K) ÷ $56,057K
= 4.34

The cash ratio of Appfolio Inc has shown fluctuating trends over the recent quarters. The cash ratio is a liquidity ratio that measures a company's ability to cover its short-term liabilities using its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

In the latest quarter ending March 31, 2024, the cash ratio stood at 4.34, which indicates that for every dollar of current liabilities, Appfolio Inc had $4.34 in cash and cash equivalents. This suggests a strong liquidity position and the ability to easily cover short-term obligations.

Looking at the historical trend, the cash ratio had improved significantly from the end of 2020 to the third quarter of 2021, reaching a peak of 3.44. However, it started to decline in the following quarters. The cash ratio decreased to 2.12 by the end of March 2023 before showing an upward trend to reach 3.03 by the end of December 2023.

Overall, Appfolio Inc's cash ratio has displayed variability, but the recent increase to 4.34 indicates a strong liquidity position in the latest quarter. Management should continue to monitor and manage its cash reserves effectively to ensure the company can meet its short-term obligations comfortably.