Appfolio Inc (APPF)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 408,889 | 381,217 | 408,017 | 389,480 | 260,102 |
| Total stockholders’ equity | US$ in thousands | 297,312 | 265,546 | 297,381 | 285,920 | 131,950 |
| Financial leverage ratio | 1.38 | 1.44 | 1.37 | 1.36 | 1.97 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $408,889K ÷ $297,312K
= 1.38
The financial leverage ratio of Appfolio Inc has shown some fluctuations over the past five years. The ratio stood at 1.97 in 2019, indicating a high level of financial leverage. However, there was a downward trend in the following years, with the ratio decreasing to 1.36 in 2020, 1.37 in 2021, and 1.44 in 2022. This suggests a moderate level of financial leverage during these years.
In 2023, the financial leverage ratio further declined to 1.38. This indicates that Appfolio Inc has continued to reduce its reliance on debt to finance its operations, which could be a positive sign for the company's financial health and risk management.
Overall, the decreasing trend in the financial leverage ratio of Appfolio Inc over the years signifies a more conservative approach towards debt financing, which may lead to lower financial risk and increased financial stability for the company in the long run.
Peer comparison
Dec 31, 2023