Appfolio Inc (APPF)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	61,583	963	-47,228	-54,980	-84,231	-72,370	-59,760	-51,954	-20,878	-11,878	-7,288	-3,915	1,284	9,783	12,624	13,398	9,349	6,461	9,069	10,412
Total assets	US$ in thousands	438,770	408,889	378,600	351,359	370,700	381,217	384,882	375,428	400,034	408,017	407,387	399,072	378,697	389,480	386,272	320,351	293,427	260,102	233,828	226,094
Operating ROA		14.04%	0.24%	-12.47%	-15.65%	-22.72%	-18.98%	-15.53%	-13.84%	-5.22%	-2.91%	-1.79%	-0.98%	0.34%	2.51%	3.27%	4.18%	3.19%	2.48%	3.88%	4.61%

March 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $61,583K ÷ $438,770K
= 14.04%

Appfolio Inc's operating return on assets (operating ROA) has shown significant fluctuations over the past few quarters. In the most recent quarter, as of March 31, 2024, the operating ROA stood at a healthy 14.04%, indicating that the company generated profits more efficiently from its assets. This is a notable improvement compared to the previous quarter, which had a marginal operating ROA of 0.24%.

Looking back at the trend, Appfolio Inc experienced a decline in operating ROA starting from the first quarter of 2023, where it reported a negative operating ROA of -22.72%. The company then underwent a period of consecutive negative operating ROA figures until the third quarter of 2023. However, there has been a positive turnaround in the company's performance since then, with operating ROA gradually improving in subsequent quarters.

These fluctuations in operating ROA suggest that Appfolio Inc has faced challenges in efficiently utilizing its assets to generate operating income in certain periods. It is important for the company to sustain the positive momentum seen in recent quarters and focus on optimizing its asset utilization to drive profitability.