Appfolio Inc (APPF)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 272,357 | 201,468 | 158,595 | 199,353 | 61,791 |
| Total current liabilities | US$ in thousands | 69,766 | 61,343 | 52,642 | 49,805 | 47,465 |
| Current ratio | 3.90 | 3.28 | 3.01 | 4.00 | 1.30 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $272,357K ÷ $69,766K
= 3.90
Appfolio Inc's current ratio has exhibited fluctuations over the past five years, as depicted in the table. The current ratio measures a company's ability to cover its short-term liabilities with its current assets. A higher current ratio indicates a stronger liquidity position.
In 2023, Appfolio Inc's current ratio stands at 3.90, indicating a significant improvement from the previous year's ratio of 3.28. This suggests that the company has $3.90 in current assets for every $1 in current liabilities, showing a healthy liquidity position.
Comparing the current ratio to earlier years, Appfolio Inc's liquidity position has strengthened over time. The ratio has shown an upward trend since 2021 when it stood at 3.01. The notable increase in the current ratio from 2021 to 2023 signifies an improved ability to meet short-term obligations.
However, it is important to note that in 2019, the current ratio was significantly lower at 1.30, indicating potential liquidity challenges at that time. The subsequent improvements in the current ratio demonstrate the company's efforts to strengthen its liquidity position over the years.
Overall, the current ratio trend for Appfolio Inc reflects a positive liquidity position, with the company being better equipped to meet its short-term obligations in recent years.
Peer comparison
Dec 31, 2023