Tyler Technologies Inc (TYL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 860,585 | 847,242 | 964,331 | 1,113,070 | 679,697 |
| Total current liabilities | US$ in thousands | 1,001,140 | 889,695 | 829,501 | 564,277 | 509,093 |
| Current ratio | 0.86 | 0.95 | 1.16 | 1.97 | 1.34 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $860,585K ÷ $1,001,140K
= 0.86
The current ratio of Tyler Technologies, Inc. has exhibited a decreasing trend over the past five years, indicating a potential weakening liquidity position. As of December 31, 2023, the current ratio stood at 0.86, which suggests the company may face challenges in meeting its short-term obligations with its current assets alone. In contrast, in 2020, the company had a current ratio of 1.97, reflecting a healthier liquidity position and a better ability to cover its short-term liabilities with current assets. The declining trend in the current ratio from 2020 to 2023 raises concerns about Tyler Technologies’ liquidity management and its ability to manage short-term financial obligations effectively. Further analysis of the company’s current assets and current liabilities is recommended to better understand the factors driving this downward trend in the current ratio.
Peer comparison
Dec 31, 2023