Tyler Technologies Inc (TYL)

Cash conversion cycle

		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
Days of inventory on hand (DOH)	days	—	14.39	—	—	—	13.46	—	—	—	13.94	14.68	15.51	14.85	14.60	—	—	—	12.33	13.75	—
Days of sales outstanding (DSO)	days	100.43	109.15	126.81	100.29	117.31	120.11	124.66	101.20	115.65	113.52	121.39	105.99	121.19	137.92	169.84	106.40	124.97	117.96	133.19	104.06
Number of days of payables	days	32.57	30.61	32.28	31.60	32.17	29.60	26.64	27.86	24.16	25.51	31.04	31.29	32.11	30.89	37.75	5.00	5.75	4.59	3.56	5.25
Cash conversion cycle	days	67.87	92.93	94.53	68.69	85.14	103.98	98.03	73.34	91.49	101.95	105.02	90.21	103.93	121.63	132.09	101.40	119.21	125.70	143.38	98.81

December 31, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 100.43 – 32.57
= 67.87

The cash conversion cycle of Tyler Technologies Inc has shown fluctuations over the provided periods. The company's cash conversion cycle represents the time it takes to convert its investments in inventory and other resources into cash flows from sales.

From March 31, 2020, to June 30, 2020, there was a significant increase in the cash conversion cycle from 98.81 days to 143.38 days, indicating a slowdown in the company's cash flow efficiency. This was followed by a decrease in the cycle to 101.40 days by March 31, 2021, showing some improvement.

Throughout the subsequent quarters, the cash conversion cycle fluctuated but generally remained above 100 days, indicating that Tyler Technologies Inc periodically faces challenges in efficiently managing its working capital.

By December 31, 2024, the cash conversion cycle had reduced to 67.87 days, suggesting that the company had made progress in streamlining its operations and converting investments into cash more swiftly. Overall, observing the cash conversion cycle provides insights into Tyler Technologies Inc's liquidity management and operational efficiency over time.