Tyler Technologies Inc (TYL)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	1,660,410	1,583,310	1,364,020	888,812	880,073
Payables	US$ in thousands	146,339	104,813	119,988	14,011	14,977
Payables turnover		11.35	15.11	11.37	63.44	58.76

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,660,410K ÷ $146,339K
= 11.35

Tyler Technologies, Inc.'s payables turnover has shown fluctuations over the past five years. The payables turnover ratio measures how efficiently a company manages its payables by calculating the number of times a company pays off its average accounts payable balance during a period.

In 2023, the payables turnover decreased to 7.37 from 10.11 in 2022, indicating that Tyler Technologies took longer to pay off its accounts payable compared to the prior year. A lower payables turnover can suggest potential cash flow issues or changes in payment terms with suppliers.

In 2021, the payables turnover was similar to 2023 at 7.36, showing consistency in the management of accounts payables. However, in 2020 and 2019, the payables turnover was significantly higher at 40.98 and 38.03, respectively. This suggests that Tyler Technologies was more efficient in paying off its obligations to suppliers during these years.

Overall, Tyler Technologies should analyze the reasons behind the fluctuations in its payables turnover ratio to ensure effective cash flow management and maintain healthy relationships with suppliers.