Appfolio Inc (APPF)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 135,644 | 140,925 | 98,290 | 61,583 | 963 | -47,228 | -54,980 | -84,231 | -72,370 | -59,760 | -51,954 | -20,878 | -11,878 | -7,288 | -3,915 | 1,284 | 9,783 | 12,624 | 13,398 | 9,349 |
| Interest expense (ttm) | US$ in thousands | 0 | 0 | 0 | 1,478 | 2,693 | 3,245 | 3,619 | 2,292 | 1,184 | 960 | 651 | 555 | 501 | 3,931 | 4,719 | 5,226 | 5,667 | 3,563 | 3,110 | 2,975 |
| Interest coverage | — | — | — | 41.67 | 0.36 | -14.55 | -15.19 | -36.75 | -61.12 | -62.25 | -79.81 | -37.62 | -23.71 | -1.85 | -0.83 | 0.25 | 1.73 | 3.54 | 4.31 | 3.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $135,644K ÷ $0K
= —
Appfolio Inc's interest coverage ratio provides insight into the company's ability to meet its interest obligations. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Looking at the data provided, Appfolio's interest coverage ratio was consistently positive and healthy from March 31, 2020, to December 31, 2021, ranging from 1.73 to 4.31. However, starting from March 31, 2021, the interest coverage ratio started declining rapidly and turned negative. This indicates that the company's operating income was no longer sufficient to cover its interest expenses.
The interest coverage ratio continued to deteriorate significantly into negative territory from June 30, 2021, to September 30, 2023, with values reaching as low as -79.81. During this period, Appfolio Inc was experiencing challenges in generating enough earnings to cover its interest payments, raising concerns about its financial health and ability to service its debt.
From December 31, 2023, onwards, there was a notable improvement in Appfolio's interest coverage ratio, turning positive again and reaching 41.67 by March 31, 2024. This improvement suggests that the company may have taken steps to enhance its profitability and financial stability.
In conclusion, Appfolio Inc experienced a significant deterioration in its interest coverage ratio from 2021 to 2023, indicating financial strain. However, the subsequent recovery in the interest coverage ratio by March 31, 2024, reflects a potential positive turnaround in the company's ability to meet its interest obligations.
Peer comparison
Dec 31, 2024