Tyler Technologies Inc (TYL)

Short-term

Turnover ratios

Inventory turnover ratios are not provided in the table for Tyler Technologies, so we cannot analyze their efficiency in managing inventory levels over the years.

Receivables turnover ratios gradually increased from 2.85 in 2019 to 3.15 in 2023, indicating that Tyler Technologies is collecting its accounts receivable more quickly. This implies the company is efficiently managing its credit sales and collecting cash from customers.

Payables turnover ratios indicate the number of times a company pays off its accounts payable during a period. Tyler Technologies saw a decrease in payables turnover from 38.03 in 2019 to 7.37 in 2023, which may suggest a change in payment terms with suppliers or a shift in the company's operating strategy.

Working capital turnover ratios are not available for 2020 and 2021. From 2019 to 2023, the turnover increased from 6.37 to an unprovided figure in 2023, indicating more efficient use of working capital to generate revenue. This could be a positive sign of improved operational efficiency and effective utilization of resources by the company.

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Average number of days

Days of Inventory on Hand (DOH) is not provided in the table, making it challenging to analyze Tyler Technologies, Inc.'s efficiency in managing inventory.

Days of Sales Outstanding (DSO) has been relatively stable over the past five years, ranging from 113.88 days to 132.03 days. This ratio indicates the average number of days the company takes to collect revenue after making a sale. A decreasing trend in DSO would suggest faster collection of receivables, while an increasing trend could indicate potential issues with credit policies or customer collections.

Number of Days of Payables has shown some fluctuations over the years. In 2023, the company took 49.55 days to pay its suppliers compared to 36.10 days in 2022. A higher number of days of payables suggests the company is taking longer to pay its bills, which can be advantageous for maintaining liquidity but may strain supplier relationships if prolonged.

Overall, a more detailed analysis taking into account industry benchmarks and trends would be necessary to provide a comprehensive assessment of the company's efficiency in managing its working capital through these activity ratios.

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Long-term

The fixed asset turnover ratio for Tyler Technologies, Inc. has shown a consistent increasing trend over the past five years, from 6.32 in 2019 to 11.50 in 2023. This indicates that the company is generating more revenue from its fixed assets each year, reflecting an improvement in efficiency in utilizing these assets to generate sales.

On the other hand, the total asset turnover ratio has fluctuated over the same period, reaching its lowest point in 2021 at 0.34 and rebounding to 0.42 in 2023. This ratio suggests the company's ability to generate sales from all its assets, including both fixed and current assets. The fluctuation in this ratio may be attributed to changes in the company's asset base and sales volume over the years.

Overall, the increasing trend in the fixed asset turnover ratio coupled with the variability in the total asset turnover ratio indicates that Tyler Technologies has been effectively managing and utilizing its fixed assets to generate revenue, although there may be room for improvement in optimizing the utilization of its total asset base for revenue generation.