Tyler Technologies Inc (TYL)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 3.11 | 3.16 | 3.01 | 2.92 | 2.90 | |
| DSO | days | 117.31 | 115.65 | 121.22 | 124.97 | 125.68 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.11
= 117.31
The days of sales outstanding (DSO) metric for Tyler Technologies, Inc. has shown a fluctuating trend over the past five years. The DSO was 115.89 days as of December 31, 2023, compared to 113.88 days in 2022, indicating a slight increase in the collection period. This may suggest that Tyler Technologies is taking slightly longer to collect its accounts receivable in 2023.
When compared to previous years, the DSO was 123.60 days in 2021, 132.03 days in 2020, and 127.86 days in 2019. The decreasing trend from 2021 to 2022 and then the slight increase in 2023 could indicate an improvement in accounts receivable collection efficiency between 2021 and 2022 but a reversal in that improvement in 2023.
A higher DSO value suggests that Tyler Technologies is taking longer to convert its sales into cash, which can impact liquidity and working capital management. It is important for the company to monitor and potentially improve its accounts receivable collection process to ensure efficient cash flow management.
Peer comparison
Dec 31, 2023