Tyler Technologies Inc (TYL)

Working capital turnover

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
Revenue (ttm) US$ in thousands 2,135,619 2,071,672 2,017,211 1,974,127 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
Total current assets US$ in thousands 1,440,780 1,238,560 1,042,330 824,421 860,585 841,991 856,880 745,663 847,242 860,150 957,287 859,899 964,331 878,256 928,928 1,700,350 1,113,070 990,599 873,942 712,220
Total current liabilities US$ in thousands 1,065,610 1,021,640 987,332 872,925 1,001,140 909,034 854,217 835,028 889,695 812,248 833,859 766,460 829,501 816,225 765,779 525,356 564,277 535,045 494,262 445,055
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,135,619K ÷ ($1,440,780K – $1,065,610K)
= 5.69

Tyler Technologies Inc's working capital turnover ratio has shown fluctuating trends over the past few quarters. The ratio was at a relatively high of 4.18 in March 2020, indicating that the company was able to generate $4.18 in revenue for every dollar of working capital invested.

However, the ratio decreased in subsequent quarters, reaching its lowest point of 0.97 in March 2021. This significant drop may suggest potential inefficiencies in managing working capital during this period.

There was a notable increase in the working capital turnover ratio in the following quarters, with spikes in June 2021, September 2021, and December 2021, reaching values of 7.69, 22.96, and 11.64, respectively. These surges indicate that the company improved its ability to generate revenue using its working capital efficiently.

The ratio continued to fluctuate in the subsequent quarters, reaching exceedingly high levels in June 2023 and December 2023 at 702.26 and 36.68, respectively. Such extreme values may result from anomalies or irregularities in financial reporting.

Overall, the working capital turnover ratio for Tyler Technologies Inc has displayed variability, suggesting fluctuations in the company's operational efficiency in converting working capital into revenue. Investors and stakeholders should further investigate the underlying reasons for these fluctuations to assess the company's financial health and performance.