Appfolio Inc (APPF)

Liquidity ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Current ratio	5.30	6.20	5.51	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
Quick ratio	4.78	5.60	4.85	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
Cash ratio	4.40	5.20	4.44	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

Appfolio Inc's liquidity ratios reflect its ability to meet short-term financial obligations. The current ratio, which measures the company's ability to pay off current liabilities using current assets, shows a generally increasing trend over the years, indicating improving liquidity. The company had a current ratio of 5.47 as of March 31, 2024, indicating a strong ability to cover its short-term obligations.

The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows an upward trend, albeit with some fluctuations. As of December 31, 2024, the quick ratio stood at 4.78, suggesting a solid ability to meet short-term obligations without relying on inventory.

The cash ratio, which assesses the company's ability to cover its current liabilities with cash and cash equivalents, also shows a similar increasing pattern over the years. As of September 30, 2024, the cash ratio was 5.20, indicating a strengthening ability to settle short-term obligations using readily available cash resources.

Overall, based on the trend analysis of the liquidity ratios, it can be inferred that Appfolio Inc has been effectively managing its liquidity position, with improving ability to meet its short-term financial commitments, which is a positive sign for its financial health and operational stability.

Additional liquidity measure

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Cash conversion cycle	days	9.41	11.77	11.91	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

The cash conversion cycle of Appfolio Inc has shown fluctuations over the periods indicated in the data. The cash conversion cycle indicates the number of days it takes for a company to convert its investments in inventory back into cash. A shorter cash conversion cycle is typically favorable as it signifies efficient management of working capital.

From March 31, 2020, to September 30, 2021, the cash conversion cycle fluctuated within a relatively narrow range, suggesting stable operations. However, from September 30, 2021, to December 31, 2024, there were some noticeable variations, indicating potential changes in the company's operational efficiency or market conditions.

The lowest cash conversion cycle was seen on September 30, 2020, at 5.49 days, indicating efficient working capital management or potentially faster inventory turnover. Conversely, the highest cash conversion cycle was observed on December 31, 2023, at 15.28 days, which may suggest longer periods of inventory holding or slower collection of receivables.

Overall, it would be beneficial for Appfolio Inc to closely monitor and manage its cash conversion cycle to ensure optimal liquidity and working capital efficiency, potentially by streamlining inventory management, improving collection processes, or negotiating better payment terms with suppliers and customers.