Appfolio Inc (APPF)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,702	-68,119	1,028	158,403	36,282
Total stockholders’ equity	US$ in thousands	297,312	265,546	297,381	285,920	131,950
ROE		0.91%	-25.65%	0.35%	55.40%	27.50%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,702K ÷ $297,312K
= 0.91%

Appfolio Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In 2023, the ROE was a low 0.91%, indicating a marginal return on shareholder equity. This marks a contrast to the negative ROE of -25.65% in 2022, signifying that the company experienced a loss in that year relative to its equity. The ROE in 2021 was 0.35%, marginally increasing from the previous year but still at a low level.

In 2020, Appfolio Inc's ROE significantly improved to 55.40%, a substantial increase from the preceding years. This sharp rise in the return on equity suggests that the company efficiently generated profits from the shareholders' equity invested. The trend continues in 2019 with an ROE of 27.50%, showing strong profitability relative to the equity base.

Overall, Appfolio Inc's ROE has been volatile, indicating fluctuations in the company's ability to generate profits from shareholders' equity over the past five years. It is essential for investors and stakeholders to closely monitor the company's performance and financial health to assess its long-term sustainability and profitability.