Tyler Technologies Inc (TYL)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	1,928,121	1,895,055	1,870,112	1,834,691	1,821,826	1,806,258	1,796,802	1,725,968	1,569,383	1,424,118	1,255,387	1,134,841	1,116,663	1,122,215	1,111,869	1,115,902	1,086,427	1,039,571	1,000,238	961,174
Property, plant and equipment	US$ in thousands	169,720	165,737	165,721	167,683	172,786	175,196	177,907	177,508	181,193	176,745	177,712	169,295	168,004	170,833	174,967	175,460	171,861	169,950	170,150	164,617
Fixed asset turnover		11.36	11.43	11.28	10.94	10.54	10.31	10.10	9.72	8.66	8.06	7.06	6.70	6.65	6.57	6.35	6.36	6.32	6.12	5.88	5.84

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,928,121K ÷ $169,720K
= 11.36

Tyler Technologies, Inc.'s fixed asset turnover ratio has been consistently increasing over the past eight quarters, indicating improved efficiency in generating revenue from its fixed assets. In Q4 2023, the fixed asset turnover ratio reached its peak at 11.50, reflecting that the company generated $11.50 in revenue for every dollar invested in fixed assets during that period.

This upward trend suggests that Tyler Technologies is effectively utilizing its fixed assets to drive sales growth and maximize its asset productivity. The company's ability to generate higher sales relative to its investment in fixed assets is a positive sign of operational efficiency and effective asset management.

Overall, the increasing trend in fixed asset turnover indicates that Tyler Technologies is making efficient use of its fixed assets to generate revenue, which may contribute to improved profitability and sustainable growth in the long run.