Appfolio Inc (APPF)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Total assets	US$ in thousands	438,770	408,889	378,600	351,359	370,700	381,217	384,882	375,428	400,034	408,017	407,387	399,072	378,697	389,480	386,272	320,351	293,427	260,102	233,828	226,094
Total stockholders’ equity	US$ in thousands	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	131,950	125,417	118,215
Financial leverage ratio		1.29	1.38	1.44	1.56	1.54	1.44	1.42	1.42	1.39	1.37	1.40	1.39	1.33	1.36	1.36	2.22	2.35	1.97	1.86	1.91

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $438,770K ÷ $339,195K
= 1.29

The financial leverage ratio of Appfolio Inc has fluctuated over the past five quarters, indicating changes in the company's capital structure and financial risk. The ratio decreased from 1.91 in June 2019 to a low of 1.29 in March 2024, and has shown some volatility in between. A higher financial leverage ratio suggests a greater reliance on debt financing to fund operations and investments, which can magnify returns but also increase risk. On the other hand, a lower ratio may indicate a more conservative approach with less debt in the capital structure. Appfolio Inc may have adjusted its leverage strategy over time in response to changing market conditions and business needs. It is essential for investors to monitor these fluctuations in the financial leverage ratio to assess the company's overall risk profile.