Appfolio Inc (APPF)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.36 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $297,312K
= 0.00
The debt-to-equity ratio for Appfolio Inc has consistently been at 0.00 for the past four years, indicating that the company has not relied on debt financing to fund its operations and growth during this period. This signifies a strong financial position with a relatively low level of financial leverage, as there is no debt in relation to equity.
However, it is worth noting that in 2019, the company had a debt-to-equity ratio of 0.36, which indicates a shift in the company's financial structure towards more reliance on debt to finance its activities. The subsequent years' return to a 0.00 ratio may suggest a deliberate effort to reduce leverage and strengthen the balance sheet.
Overall, the consistent 0.00 debt-to-equity ratio in the past years demonstrates a conservative approach to financial management and a preference for equity financing, which could be viewed positively by investors and creditors alike.
Peer comparison
Dec 31, 2023