Tyler Technologies Inc (TYL)

Cash ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents US$ in thousands 744,721 165,493 173,857 309,171 603,623
Short-term investments US$ in thousands 23,257 10,385 37,030 52,300 72,187
Total current liabilities US$ in thousands 1,065,610 1,001,140 889,695 829,501 564,277
Cash ratio 0.72 0.18 0.24 0.44 1.20

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($744,721K + $23,257K) ÷ $1,065,610K
= 0.72

The cash ratio for Tyler Technologies Inc has exhibited a downward trend over the years, declining from 1.20 as of December 31, 2020, to 0.44 as of December 31, 2021, further dropping to 0.24 as of December 31, 2022, before decreasing to 0.18 as of December 31, 2023. However, there was an increase in the cash ratio to 0.72 as of December 31, 2024.

A cash ratio below 1 indicates that the company may have limited liquid assets to cover its current liabilities. Tyler Technologies Inc would need to carefully manage its cash position to ensure it can meet its short-term obligations. The fluctuation in the cash ratio could be attributed to changes in the company's cash holdings, operating performance, or changes in its current liabilities. Further investigation into the company's cash management practices and financial health would be beneficial to fully assess its liquidity position.