Tyler Technologies Inc (TYL)
Working capital 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 |
| Total current assets | US$ in thousands | 1,440,780 | 860,585 | 847,242 | 964,331 | 1,113,070 |
| Total current liabilities | US$ in thousands | 1,065,610 | 1,001,140 | 889,695 | 829,501 | 564,277 |
| Working capital turnover | 5.70 | — | — | 11.64 | 2.03 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $2,137,800K ÷ ($1,440,780K – $1,065,610K)
= 5.70
The working capital turnover ratio reflects the efficiency with which a company utilizes its working capital to generate sales revenue. For Tyler Technologies Inc, the working capital turnover has shown significant variability over the years.
In 2020, the company had a working capital turnover ratio of 2.03, indicating that for every dollar of working capital, Tyler generated $2.03 in sales revenue. This figure doubled to 11.64 in 2021, demonstrating a substantial improvement in working capital efficiency. However, the data for 2022 and 2023 are unavailable (denoted by "—"), making it challenging to assess the trend during these years.
The working capital turnover ratio rebounded to 5.70 in 2024, suggesting that the company was able to effectively utilize its working capital to drive sales during that period. Overall, the fluctuating nature of the working capital turnover ratio for Tyler Technologies Inc indicates varying levels of efficiency in utilizing its working capital to support revenue generation over the years.
Peer comparison
Dec 31, 2024