Appfolio Inc (APPF)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	49,509	70,769	57,847	140,263	15,813
Short-term investments	US$ in thousands	162,196	89,297	64,600	28,256	22,876
Receivables	US$ in thousands	27,709	16,503	12,595	10,057	7,562
Total current liabilities	US$ in thousands	69,766	61,343	52,642	49,805	47,465
Quick ratio		3.43	2.88	2.57	3.59	0.97

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($49,509K + $162,196K + $27,709K) ÷ $69,766K
= 3.43

The quick ratio of Appfolio Inc has shown varying trends over the past five years. As of December 31, 2023, the quick ratio stood at 3.43, indicating a strong ability to meet short-term obligations with quick assets. The ratio has been generally increasing since 2021 when it was at 2.57, reaching its peak in 2023.

In 2020, the quick ratio was relatively high at 3.59, suggesting a strong liquidity position. However, there was a significant decrease in the quick ratio in 2019 to 0.97, indicating potential difficulties in meeting short-term obligations with the available quick assets.

Overall, the increasing trend in the quick ratio from 2019 to 2023 demonstrates an improvement in the company's liquidity position and its ability to cover immediate financial liabilities with short-term assets. This trend indicates a positive financial performance in managing its liquidity over the years.