Appfolio Inc (APPF)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 626,678 | 408,889 | 381,217 | 408,017 | 389,480 |
| Total stockholders’ equity | US$ in thousands | 519,290 | 297,312 | 265,546 | 297,381 | 285,920 |
| Financial leverage ratio | 1.21 | 1.38 | 1.44 | 1.37 | 1.36 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $626,678K ÷ $519,290K
= 1.21
The financial leverage ratio of Appfolio Inc has shown some fluctuations over the years. From December 31, 2020, to December 31, 2024, the ratio has ranged from 1.21 to 1.44. This indicates that the company's financial leverage has slightly increased over the period, reaching its peak in 2022. A higher financial leverage ratio suggests that a greater proportion of the company's assets are financed through debt, which can amplify returns but also increase financial risk. Appfolio Inc's ratios suggest a moderate level of leverage, which may be a strategic choice to capitalize on growth opportunities while maintaining a reasonable level of risk. It is essential for stakeholders to monitor this trend to ensure it aligns with the company's long-term financial objectives and risk tolerance.
Peer comparison
Dec 31, 2024