Appfolio Inc (APPF)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.66	0.77

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $519,290K
= 0.00

The debt-to-equity ratio for Appfolio Inc has shown a decreasing trend over the analyzed periods. As of March 31, 2020, the ratio was 0.77, indicating that the company had higher levels of debt relative to equity. However, from June 30, 2020, the ratio started declining and reached 0.00 as of December 31, 2021, and remained at 0.00 up until December 31, 2024.

A debt-to-equity ratio of 0.00 suggests that the company has either no debt or a negligible amount of debt in relation to its equity. This implies that Appfolio Inc relies more on equity financing rather than debt financing to fund its operations and growth. A decrease in the debt-to-equity ratio can be a positive indicator of financial health, as it lowers the company's financial risk and potential bankruptcy probability associated with high debt levels.

Overall, the decreasing trend in Appfolio Inc's debt-to-equity ratio signifies a conservative approach towards capital structure management and a reduced dependency on external borrowing, which could lead to enhanced financial stability and resilience in the long term.