Appfolio Inc (APPF)

Quick ratio

		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	US$ in thousands	59,214	49,509	59,937	24,698	103,925	70,769	67,232	42,626	49,536	57,847	84,444	48,610	44,744	140,263	144,028	53,315	56,779	15,813	20,121	19,514
Short-term investments	US$ in thousands	184,298	162,196	131,589	139,273	65,022	89,297	72,018	75,425	78,389	64,600	76,034	102,978	103,341	28,256	32,689	20,930	7,952	22,876	20,355	19,425
Receivables	US$ in thousands	26,179	27,709	20,359	20,033	17,416	16,503	14,884	16,175	16,154	12,595	12,184	14,973	12,524	10,057	9,416	12,663	9,617	7,562	8,039	8,180
Total current liabilities	US$ in thousands	56,057	69,766	74,147	74,711	79,827	61,343	57,765	54,719	54,020	52,642	49,202	48,785	43,037	49,805	56,151	47,307	38,649	47,465	42,270	41,816
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

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($59,214K + $184,298K + $26,179K) ÷ $56,057K
= 4.81

The quick ratio of Appfolio Inc has shown fluctuations over the past several quarters. The ratio indicates the company's ability to pay off its current liabilities using its most liquid assets. A higher quick ratio is generally preferred as it suggests a stronger liquidity position.

Looking at the trend, the quick ratio has been generally above 2, indicating that the company has a comfortable buffer of liquid assets to cover its short-term obligations. The ratio peaked at 4.81 in March 2024, which may suggest a temporary increase in liquid assets relative to current liabilities.

However, there are periods where the quick ratio dipped below 2, such as in March 2020 and June 2020, which may indicate a tighter liquidity position during those quarters.

Overall, Appfolio Inc's quick ratio trend suggests a relatively strong liquidity position, with some fluctuations that might require further investigation to understand the underlying reasons for the changes. It is important for stakeholders to monitor the quick ratio over time to ensure the company maintains a healthy level of liquidity to meet its short-term obligations.