Appfolio Inc (APPF)

Return on total capital

		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
Earnings before interest and tax (EBIT) (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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	0	0	95,146	95,760	47,375	47,677	47,979
Total stockholders’ equity	US$ in thousands	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	131,950	125,417	118,215
Return on total capital		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%	3.60%	5.24%	6.26%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $61,583K ÷ ($—K + $339,195K)
= 18.16%

The return on total capital for Appfolio Inc has shown variability over the past several quarters. The company experienced a significant improvement in return on total capital from March 2021 to March 2022, with the ratio increasing from 0.45% to 18.16%. However, there was a sharp decline in the following quarters, with negative returns recorded from June 2022 to March 2023, reaching a low of -35.01%.

Subsequently, there was a gradual recovery in return on total capital, with positive figures recorded from September 2023 onwards. The company managed to turn around its performance, with the ratio improving to 18.16% as of March 31, 2024. It is essential for investors and analysts to monitor this metric closely to assess the company's efficiency in generating returns from its total capital base.