Tyler Technologies Inc (TYL)

Cash ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash and cash equivalents	US$ in thousands	165,493	173,857	309,171	603,623	232,682
Short-term investments	US$ in thousands	10,385	37,030	52,300	72,187	39,399
Total current liabilities	US$ in thousands	1,001,140	889,695	829,501	564,277	509,093
Cash ratio		0.18	0.24	0.44	1.20	0.53

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($165,493K + $10,385K) ÷ $1,001,140K
= 0.18

The cash ratio of Tyler Technologies, Inc. has shown a declining trend over the past five years. In particular, the cash ratio decreased from 1.26 in 2020 to 0.24 in 2023, indicating a significant decrease in the company's ability to cover its short-term liabilities with its available cash and cash equivalents.

A cash ratio of less than 1 suggests that the company may have difficulty meeting its short-term obligations solely with its cash reserves. While a lower cash ratio may not necessarily indicate financial distress, it does raise concerns about the company's liquidity position.

It is important for investors and analysts to closely monitor Tyler Technologies, Inc.'s liquidity position and assess the reasons behind the declining cash ratio to determine the company's ability to manage its short-term obligations effectively in the future.