Appfolio Inc (APPF)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | 0 | 47,375 |
| Total stockholders’ equity | US$ in thousands | 297,312 | 265,546 | 297,381 | 285,920 | 131,950 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $297,312K)
= 0.00
The debt-to-capital ratio of Appfolio Inc has shown a consistent trend of zero over the years 2020, 2021, 2022, and 2023. This indicates that the company has not relied on debt as a source of financing relative to its total capital structure during these years.
However, it is worth noting a significant change from a debt-to-capital ratio of 0.26 in 2019 to zero in subsequent years. This sharp decrease suggests that Appfolio Inc has reduced its reliance on debt financing in favor of other sources of capital or has paid off a significant portion of its debt.
The consistent zero debt-to-capital ratio in recent years may signal a strong financial position with lower financial risk due to the absence of debt obligations. This could be seen as a positive indicator for investors and creditors, as it implies a more stable capital structure and a lower likelihood of financial distress related to debt repayment issues.
Overall, the trend of a zero debt-to-capital ratio for Appfolio Inc indicates a strategic financial approach focused on maintaining a favorable balance between debt and equity financing.
Peer comparison
Dec 31, 2023