Tyler Technologies Inc (TYL)

Days of sales outstanding (DSO)

		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	Mar 31, 2019
Receivables turnover		3.11	3.04	2.93	3.61	3.16	3.22	3.01	3.44	3.01	2.65	2.15	3.43	2.92	3.09	2.74	3.51	2.90	2.99	2.62	3.21
DSO	days	117.31	120.11	124.66	101.20	115.65	113.52	121.39	105.99	121.19	137.92	169.84	106.40	124.97	117.96	133.19	104.06	125.68	122.18	139.17	113.54

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 3.11
= 117.31

To analyze Tyler Technologies, Inc.'s days of sales outstanding (DSO) over the past eight quarters, we observe a fluctuating trend.

In Q4 2023, the DSO decreased to 115.89 days from 119.81 days in Q3 2023. While still high, this reduction is a positive sign as it indicates that the company is collecting its accounts receivable more efficiently.

Comparing Q4 2023 to the same quarter a year ago (Q4 2022), there has been a slight improvement as DSO decreased from 113.88 days to 115.89 days.

Looking at the overall trend, there was a spike in DSO in Q2 2023 (122.60 days) from Q1 2023 (99.50 days), which might raise some concerns about potential challenges in collecting receivables during that period.

It is worth noting that the DSO in Q1 2023 was comparatively lower at 99.50 days, which could be seen as a positive indicator of more efficient accounts receivable management.

Overall, the company should focus on maintaining a downward trend in DSO to improve liquidity and cash flow management. Regular monitoring and analysis of DSO can help Tyler Technologies, Inc. to assess its credit policies, collection processes, and overall financial health.