Tyler Technologies Inc (TYL)
Receivables 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 |
| Receivables | US$ in thousands | 587,634 | 619,704 | 577,257 | 521,059 | 382,319 |
| Receivables turnover | 3.64 | 3.11 | 3.16 | 3.01 | 2.92 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $2,137,800K ÷ $587,634K
= 3.64
The receivables turnover of Tyler Technologies Inc has shown a consistent improvement over the past five years, increasing from 2.92 in December 31, 2020, to 3.64 in December 31, 2024. This indicates that the company is collecting its accounts receivable more efficiently.
A higher receivables turnover ratio signifies that Tyler Technologies Inc is converting its accounts receivable into cash more frequently within a given period, reflecting effective credit policies and timely collection efforts. This trend suggests that the company is managing its credit risk well and has established effective procedures for collecting payments from customers.
Overall, the increasing trend in receivables turnover over the years is a positive sign of Tyler Technologies Inc's liquidity and efficient management of its accounts receivable. It indicates a healthy financial position and operational efficiency in handling its receivables, which is crucial for sustaining and growing its business in the long run.
Peer comparison
Dec 31, 2024