Tyler Technologies Inc (TYL)

Activity ratios

Short-term

Turnover ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Inventory turnover — 25.36 — — — 27.11 — — — 26.18 24.87 23.53 24.57 24.99 — — — 29.59 26.55 —
Receivables turnover 3.63 3.34 2.88 3.64 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
Payables turnover 11.21 11.92 11.31 11.55 11.35 12.33 13.70 13.10 15.11 14.31 11.76 11.66 11.37 11.82 9.67 72.93 63.44 79.49 102.48 69.56
Working capital turnover 5.69 9.55 36.68 — — — 702.26 — — 37.71 14.56 18.47 11.64 22.96 7.69 0.97 2.03 2.46 2.93 4.18

Activity ratios provide insight into how efficiently a company is managing its resources. Let's analyze Tyler Technologies Inc's activity ratios based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period. Tyler Technologies Inc's inventory turnover shows fluctuation over the years, ranging from 23.53 to 29.59. A higher turnover indicates efficient management of inventory.

2. Receivables Turnover:
- Receivables turnover ratio signifies how efficiently a company collects its outstanding receivables. Tyler Technologies Inc's receivables turnover ranges from 2.15 to 3.64, indicating varying efficiency in collecting receivables over different periods.

3. Payables Turnover:
- Payables turnover ratio reflects how quickly a company pays off its suppliers. Tyler Technologies Inc's payables turnover ranges from 9.67 to 102.48, with significant fluctuations. Higher turnover may suggest favorable credit terms with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio indicates how efficiently a company is utilizing its working capital to generate sales. Tyler Technologies Inc's working capital turnover fluctuates greatly, from 0.97 to 702.26. Extremely high turnover in some periods may indicate aggressive sales growth or efficient working capital management.

In summary, Tyler Technologies Inc's activity ratios show variability over time, highlighting fluctuations in inventory management, receivables collection, payables payment, and working capital utilization. Monitoring these ratios can help assess the company's operational efficiency and financial health.

Average number of days

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Days of inventory on hand (DOH) days — 14.39 — — — 13.46 — — — 13.94 14.68 15.51 14.85 14.60 — — — 12.33 13.75 —
Days of sales outstanding (DSO) days 100.43 109.15 126.81 100.29 117.31 120.11 124.66 101.20 115.65 113.52 121.39 105.99 121.19 137.92 169.84 106.40 124.97 117.96 133.19 104.06
Number of days of payables days 32.57 30.61 32.28 31.60 32.17 29.60 26.64 27.86 24.16 25.51 31.04 31.29 32.11 30.89 37.75 5.00 5.75 4.59 3.56 5.25

Tyler Technologies Inc's activity ratios show fluctuations over the years.

1. Days of Inventory on Hand (DOH):
- Tyler Tech had relatively stable inventory turnover in recent quarters, with DOH ranging from 12.33 to 15.51 days.
- The company managed its inventory efficiently, keeping it at a level that allows for quick sales without excessive stockpiling.

2. Days of Sales Outstanding (DSO):
- DSO varied significantly, indicating fluctuations in the collection of receivables.
- The company struggled with collections in some quarters, as seen in DSO reaching as high as 169.84 days.
- However, improvements were made over time, with DSO declining to around 100 days in more recent periods.

3. Number of Days of Payables:
- Tyler Tech had a consistent payment pattern to its suppliers, with payable days ranging from 3.56 to 37.75 days.
- The company kept a relatively short payable period, signaling an efficient cash conversion cycle.

Overall, Tyler Technologies Inc has shown efforts to manage its working capital effectively, with varying success in inventory management, receivables collection, and payables management. Continued attention to optimizing these activity ratios is key to maintaining healthy cash flows and working capital levels.

Long-term

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Fixed asset turnover 13.04 12.53 12.03 11.81 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
Total asset turnover 0.41 0.41 0.42 0.43 0.41 0.41 0.40 0.40 0.39 0.39 0.38 0.37 0.33 0.30 0.27 0.35 0.43 0.45 0.47 0.50

Tyler Technologies Inc has shown a consistent improvement in its fixed asset turnover ratio over the years, indicating that the company is effectively utilizing its fixed assets to generate revenue. The ratio has been steadily increasing from 6.36 in March 2020 to 13.04 in December 2024. This suggests that Tyler Technologies Inc has been more efficient in generating sales in relation to its investment in fixed assets.

On the other hand, the total asset turnover ratio has shown some fluctuations but has generally increased over the years. The ratio was at a low of 0.27 in June 2021 but improved to 0.41 in December 2024. This indicates that Tyler Technologies Inc has been generating more revenue in relation to its total assets.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios highlights the company's efficiency in utilizing its assets to generate sales, which is a positive indicator for its long-term activity performance.