Appfolio Inc (APPF)

Liquidity ratios

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
Current ratio 5.47 3.90 3.24 2.80 2.65 3.28 3.06 2.86 3.14 3.01 4.01 3.89 4.22 4.00 3.59 2.17 2.40 1.30 1.53 1.53
Quick ratio 4.81 3.43 2.86 2.46 2.33 2.88 2.67 2.45 2.67 2.57 3.51 3.41 3.73 3.59 3.31 1.84 1.92 0.97 1.15 1.13
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

Appfolio Inc's liquidity ratios have exhibited fluctuations over the past few quarters. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has shown an increasing trend overall. The ratio has improved from 1.53 in September 2019 to 5.47 in March 2024, indicating that the company has significantly strengthened its short-term liquidity position.

Similarly, the quick ratio, which provides a more stringent assessment of liquidity by excluding inventories from current assets, has followed a similar upward trajectory. The quick ratio has increased from 1.13 in September 2019 to 4.81 in March 2024, suggesting that the company has ample liquid assets to cover its current liabilities without relying on inventory sales.

Furthermore, the cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents to cover current liabilities, has also shown improvement over the same period. The cash ratio has risen from 0.93 in September 2019 to 4.34 in March 2024, indicating a substantial increase in the company's ability to meet short-term obligations with its most liquid assets.

Overall, the liquidity ratios of Appfolio Inc have demonstrated a positive trend, reflecting the company's strengthened ability to meet its short-term financial commitments with its available liquid assets.

Additional liquidity measure

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 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

The cash conversion cycle of Appfolio Inc has shown some fluctuations over the periods analyzed. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash receipts from customers.

The average cash conversion cycle for the periods provided is approximately 10.64 days. This indicates that, on average, it takes Appfolio Inc about 10.64 days to convert raw materials into finished goods, sell those goods to customers, and collect payment from customers.

A shorter cash conversion cycle suggests that the company is able to efficiently manage its working capital and turn its assets into cash quickly. On the other hand, a longer cycle may indicate inefficiencies in inventory management, sales, or collections processes.

Appfolio Inc experienced variations in its cash conversion cycle, ranging from a low of 5.49 days to a high of 15.28 days. It is important for the company to closely monitor these fluctuations to identify any potential issues that may impact its liquidity and overall financial health.

Overall, a lower and stable cash conversion cycle is generally favorable as it indicates effective management of working capital, efficient operations, and a strong cash flow position.