Appfolio Inc (APPF)

Quick ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash	US$ in thousands	42,504	49,509	70,769	57,847	140,263
Short-term investments	US$ in thousands	235,745	162,196	89,297	64,600	28,256
Receivables	US$ in thousands	24,346	27,709	16,503	12,595	10,057
Total current liabilities	US$ in thousands	63,280	69,766	61,343	52,642	49,805
Quick ratio		4.78	3.43	2.88	2.57	3.59

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($42,504K + $235,745K + $24,346K) ÷ $63,280K
= 4.78

The quick ratio of Appfolio Inc has shown a relatively stable trend over the past five years, ranging from 2.57 to 4.78. This ratio indicates the company's ability to meet its short-term obligations with its most liquid assets. A higher quick ratio, such as the 4.78 seen in December 31, 2024, suggests that the company has a strong ability to cover its current liabilities without relying on inventory sales. Generally, a quick ratio above 1.0 is considered healthy, indicating the company's ability to meet its short-term financial obligations. Appfolio Inc's quick ratio has remained consistently above 1.0 in all the years provided, which is a positive indicator of its liquidity and ability to manage short-term financial commitments effectively.