Tyler Technologies Inc (TYL)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	165,493	131,486	118,764	130,845	173,857	185,927	253,062	243,262	309,171	234,128	216,773	1,250,750	603,623	518,685	351,336	301,985	232,682	161,438	11,187	39,437
Short-term investments	US$ in thousands	10,385	11,623	19,100	28,810	37,030	39,360	34,466	44,973	52,300	49,355	51,223	59,030	72,187	55,595	52,352	38,250	39,399	32,931	31,184	36,958
Total current liabilities	US$ in thousands	1,001,140	909,034	854,217	835,028	889,695	812,248	833,859	766,460	829,501	816,225	765,779	525,356	564,277	535,045	494,262	445,055	509,093	476,814	453,732	403,380
Cash ratio		0.18	0.16	0.16	0.19	0.24	0.28	0.34	0.38	0.44	0.35	0.35	2.49	1.20	1.07	0.82	0.76	0.53	0.41	0.09	0.19

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

Tyler Technologies, Inc.'s cash ratio has been relatively stable over the past eight quarters, ranging from 0.23 to 0.47. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a greater ability to meet short-term obligations using cash on hand.

The gradual decline in Tyler Technologies' cash ratio from 0.47 in Q1 2022 to 0.24 in Q4 2023 may suggest a decrease in the company's liquidity position over time. This could be a cause for concern as it may indicate difficulties in meeting short-term obligations as they come due.

It is important for Tyler Technologies to closely monitor its cash position and manage its liquidity effectively to ensure it can meet its financial obligations without relying too heavily on external financing. Analysis and comparison of the cash ratio with industry benchmarks can provide further insights into the company's liquidity management and financial health.