Appfolio Inc (APPF)
Return on equity (ROE)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 204,068 | 131,602 | 125,041 | 76,475 | 2,702 | -47,266 | -77,873 | -88,942 | -68,119 | -49,750 | -45,729 | -13,738 | 1,028 | 1,846 | 139,663 | 156,899 | 158,403 | 163,344 | 30,646 | 34,540 |
| Total stockholders’ equity | US$ in thousands | 519,290 | 412,827 | 371,412 | 339,195 | 297,312 | 262,656 | 225,953 | 240,569 | 265,546 | 271,872 | 264,991 | 288,743 | 297,381 | 291,699 | 287,267 | 285,784 | 285,920 | 284,516 | 144,504 | 124,875 |
| ROE | 39.30% | 31.88% | 33.67% | 22.55% | 0.91% | -18.00% | -34.46% | -36.97% | -25.65% | -18.30% | -17.26% | -4.76% | 0.35% | 0.63% | 48.62% | 54.90% | 55.40% | 57.41% | 21.21% | 27.66% |
December 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $204,068K ÷ $519,290K
= 39.30%
Return on equity (ROE) is a key financial ratio that measures a company's profitability by evaluating its ability to generate earnings from the shareholders' equity invested in the business. Analyzing the ROE trend of Appfolio Inc over the reported periods reveals fluctuations in the company's profitability and efficiency in utilizing shareholder funds.
Appfolio Inc's ROE experienced a robust performance in the first three quarters of 2020, with values ranging from 21.21% to 57.41%. This indicated the company's effective management of shareholder equity to generate profits during that period. However, starting from the fourth quarter of 2021, the ROE began to decline significantly, turning negative in subsequent periods. The negative ROE figures from March 2022 to June 2023 suggest that the company was not generating sufficient profits relative to the equity invested.
The positive turnaround in Appfolio Inc's ROE in the latter half of 2023 and throughout 2024 is a positive sign, indicating an improvement in the company's profitability and efficiency in utilizing shareholders' equity. The consistent increase in ROE values from 0.91% in December 2023 to 39.30% in December 2024 reflects a favorable trend in the company's financial performance during this period.
Overall, the analysis of Appfolio Inc's ROE demonstrates significant variability in profitability and efficiency over the reported periods, with both positive and negative trends observed. Monitoring ROE trends can provide valuable insights into the company's financial health and performance over time, enabling stakeholders to make informed decisions regarding their investment in the company.
Peer comparison
Dec 31, 2024