Appfolio Inc (APPF)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 204,068 | 2,702 | -68,119 | 1,028 | 158,403 |
| Total stockholders’ equity | US$ in thousands | 519,290 | 297,312 | 265,546 | 297,381 | 285,920 |
| ROE | 39.30% | 0.91% | -25.65% | 0.35% | 55.40% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $204,068K ÷ $519,290K
= 39.30%
Appfolio Inc's return on equity (ROE) has exhibited significant fluctuations over the past five years. In December 31, 2020, the ROE stood at a commendable 55.40%, indicating that the company was efficiently utilizing shareholder equity to generate profits. However, this performance sharply declined in December 31, 2021, plummeting to just 0.35%, suggesting a significant decrease in profitability relative to shareholder investment.
By December 31, 2022, Appfolio Inc's ROE turned negative, registering at -25.65%, which signifies that the company operated at a loss relative to shareholder equity. The following year, in December 31, 2023, there was a slight improvement as the ROE increased to 0.91%, although still at a low level.
The most recent data point, December 31, 2024, shows a notable recovery in Appfolio Inc's ROE, reaching 39.30%, indicating improved profitability compared to the previous years. It is evident that the company experienced fluctuations in its ROE, reflecting varying levels of efficiency in utilizing shareholder funds to generate earnings over the specified period.
Peer comparison
Dec 31, 2024