Tyler Technologies Inc (TYL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 1,440,780 | 860,585 | 847,242 | 964,331 | 1,113,070 |
| Total current liabilities | US$ in thousands | 1,065,610 | 1,001,140 | 889,695 | 829,501 | 564,277 |
| Current ratio | 1.35 | 0.86 | 0.95 | 1.16 | 1.97 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,440,780K ÷ $1,065,610K
= 1.35
The current ratio of Tyler Technologies Inc has exhibited a declining trend over the past few years, from 1.97 on December 31, 2020, to 1.16 on December 31, 2021, 0.95 on December 31, 2022, 0.86 on December 31, 2023, before increasing to 1.35 on December 31, 2024.
A current ratio below 1 indicates that the company may have difficulties meeting its short-term obligations with its current assets alone. The downward trend observed until 2023 could signal potential liquidity issues or inefficiencies in managing current assets and liabilities. However, the improvement in the current ratio in 2024 suggests a positive development towards a healthier liquidity position.
It is important for Tyler Technologies Inc to continue monitoring their current ratio and take necessary actions to maintain a healthy balance between current assets and current liabilities to ensure financial stability and meet short-term obligations effectively.
Peer comparison
Dec 31, 2024