Tyler Technologies Inc (TYL)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	2,137,800	1,928,120	1,821,820	1,568,990	1,116,660
Property, plant and equipment	US$ in thousands	163,775	169,720	172,786	181,193	168,004
Fixed asset turnover		13.05	11.36	10.54	8.66	6.65

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,137,800K ÷ $163,775K
= 13.05

Tyler Technologies Inc has shown a consistent improvement in its fixed asset turnover over the past five years. The fixed asset turnover ratio has increased from 6.65 in December 31, 2020, to 13.05 in December 31, 2024. This signifies that the company has been generating more revenue for each dollar invested in fixed assets over the years.

The significant increase in the fixed asset turnover ratio indicates that Tyler Technologies Inc has been utilizing its fixed assets efficiently to generate sales. This improvement reflects positively on the company's operational efficiency and suggests that it is effectively managing and leveraging its fixed assets to drive revenue growth.

A higher fixed asset turnover ratio is generally a positive indicator, as it suggests that the company is maximizing the utilization of its fixed assets to generate revenue. In the case of Tyler Technologies Inc, the consistent increase in the ratio over the years is a promising sign of the company's operational performance and efficiency in utilizing its fixed assets.

Overall, the improving trend in Tyler Technologies Inc's fixed asset turnover ratio indicates that the company is effectively managing its fixed assets to drive revenue growth and enhance overall operational efficiency.