Tyler Technologies Inc (TYL)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 14.85 | — | — |
| Days of sales outstanding (DSO) | days | 117.31 | 115.65 | 121.22 | 124.97 | 125.68 |
| Number of days of payables | days | 32.17 | 24.16 | 32.11 | 5.75 | 6.21 |
| Cash conversion cycle | days | 85.14 | 91.49 | 103.96 | 119.21 | 119.47 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 117.31 – 32.17
= 85.14
The cash conversion cycle for Tyler Technologies, Inc. has shown some fluctuations over the past five years. In 2023, the company's cash conversion cycle improved to 66.34 days from 77.78 days in 2022. This indicates that Tyler Technologies was able to convert its investments in inventory and accounts receivable into cash more efficiently in 2023.
Comparing to earlier years, the company had a higher cash conversion cycle in 2020 and 2019, with figures of 123.12 days and 118.26 days, respectively. This suggests that Tyler Technologies took longer to convert its investments into cash during those periods.
In general, a decreasing trend in the cash conversion cycle indicates that the company is managing its inventory and accounts receivable more effectively, leading to a quicker conversion of resources into cash. This improvement can have positive implications for Tyler Technologies' liquidity and overall financial performance.
Peer comparison
Dec 31, 2023