Appfolio Inc (APPF)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 135,644 140,925 98,290 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
Long-term debt US$ in thousands — — — — — — — — — — — — — — — — 0 0 95,146 95,760
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
Return on total capital 26.12% 34.14% 26.46% 18.16% 0.32% -17.98% -24.33% -35.01% -27.25% -21.98% -19.61% -7.23% -3.99% -2.50% -1.36% 0.45% 3.42% 4.44% 5.59% 4.24%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $135,644K ÷ ($—K + $519,290K)
= 26.12%

Appfolio Inc's return on total capital has fluctuated significantly over the reported periods. The trend indicates a decline in performance from March 31, 2022, to December 31, 2023, with negative returns ranging from -7.23% to -35.01%. However, there was a notable turnaround starting from March 31, 2024, with positive returns of 18.16%, 26.46%, and 34.14% reported in subsequent quarters. This improvement suggests a potential recovery and positive momentum in generating returns on the total capital employed by Appfolio Inc. It is essential for stakeholders to closely monitor future financial performance to assess the sustainability of this positive trend.