Tyler Technologies Inc (TYL)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | 14.85 | — |
| Days of sales outstanding (DSO) | days | 100.33 | 117.31 | 115.65 | 121.22 | 124.97 |
| Number of days of payables | days | 32.57 | 32.17 | 24.16 | 32.11 | 5.75 |
| Cash conversion cycle | days | 67.77 | 85.14 | 91.49 | 103.96 | 119.21 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 100.33 – 32.57
= 67.77
The cash conversion cycle of Tyler Technologies Inc has shown a consistent trend of improvement over the years. As of December 31, 2020, the cycle stood at 119.21 days, indicating that the company took approximately 119 days to convert its investments in inventory and accounts receivable into cash.
By December 31, 2024, the cash conversion cycle had significantly decreased to 67.77 days, demonstrating the company's ability to manage its working capital more efficiently. This reduction suggests that Tyler Technologies Inc has been able to streamline its operations and enhance its cash flow by accelerating the conversion of its resources into cash.
Overall, the decreasing trend in the cash conversion cycle implies that Tyler Technologies Inc has been effectively managing its inventory, accounts receivable, and accounts payable to improve liquidity and efficiency in its cash conversion processes. This bodes well for the company's financial health and indicates a positive operational performance in terms of working capital management.
Peer comparison
Dec 31, 2024