Appfolio Inc (APPF)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.21 | 1.38 | 1.44 | 1.37 | 1.36 |
Appfolio Inc's solvency ratios indicate a strong financial position with low levels of debt relative to its assets, capital, and equity over the period from December 31, 2020, to December 31, 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained consistent at 0.00 throughout the five-year period, indicating that the company's debt obligations were minimal compared to its total assets, capital, and equity.
Furthermore, the Financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, shows a slight fluctuation over the years but generally ranges between 1.21 and 1.44. This indicates that Appfolio Inc has been moderately leveraged but has not significantly increased its financial risk through debt financing.
Overall, based on the solvency ratios provided, it can be concluded that Appfolio Inc has maintained a healthy solvency position with a low level of debt relative to its financial metrics, demonstrating its ability to meet its financial obligations and sustain long-term stability.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | -61.12 | -23.71 | 5.29 |
The interest coverage ratio of Appfolio Inc has exhibited a fluctuating trend over the years. In December 2020, the interest coverage ratio stood at 5.29, indicating that the company's operating income was able to cover its interest expenses approximately 5 times over. However, by December 2021, the interest coverage ratio deteriorated significantly to -23.71, implying that the company's operating income was inadequate to cover its interest obligations, raising concerns about its financial stability.
The situation worsened in December 2022, as the interest coverage ratio plummeted to -61.12, suggesting a severe inability to meet interest expenses through operating income. The absence of available data for December 2023 and December 2024 indicates potential challenges or uncertainties that may have impacted the company's financial performance during those periods.
Overall, the declining trend in the interest coverage ratio raises red flags regarding Appfolio Inc's ability to service its debt obligations from its operational earnings, highlighting the need for the company to address its financial leverage and improve its profitability to ensure long-term sustainability.