Tyler Technologies Inc (TYL)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,928,120	1,821,820	1,568,990	1,116,660	1,086,430
Property, plant and equipment	US$ in thousands	169,720	172,786	181,193	168,004	171,861
Fixed asset turnover		11.36	10.54	8.66	6.65	6.32

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,928,120K ÷ $169,720K
= 11.36

The fixed asset turnover ratio for Tyler Technologies, Inc. has shown a consistently increasing trend over the past five years, indicating that the company has been able to generate more revenue from its fixed assets with each passing year.

The ratio has increased from 6.32 in 2019 to 11.50 in 2023, reflecting a significant improvement in the efficiency of utilizing fixed assets to generate sales revenue. This suggests that Tyler Technologies has been successful in maximizing the productivity and effectiveness of its fixed assets in generating revenue.

A higher fixed asset turnover ratio is generally seen as favorable, as it indicates that the company is efficiently utilizing its fixed assets to generate sales, potentially leading to higher profitability. The company's ability to achieve higher fixed asset turnover ratios over the years demonstrates management's effectiveness in utilizing and managing its fixed assets to drive revenue growth.

Overall, the increasing trend in Tyler Technologies' fixed asset turnover ratio indicates operational efficiency and effective utilization of fixed assets in generating revenue.