Tyler Technologies Inc (TYL)

Liquidity ratios

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
Current ratio 0.86 0.93 1.00 0.89 0.95 1.06 1.15 1.12 1.16 1.08 1.21 3.24 1.97 1.85 1.77 1.60 1.34 1.20 1.00 1.00
Quick ratio 0.79 0.84 0.91 0.80 0.89 0.97 1.06 1.03 1.06 1.01 1.11 3.12 1.88 1.75 1.64 1.48 1.27 1.14 0.93 0.93
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

Tyler Technologies, Inc.'s liquidity ratios indicate the company's ability to meet its short-term financial obligations. The current ratio, which measures the company's ability to pay off its current liabilities with its current assets, has been fluctuating over the past eight quarters, ranging from 0.86 to 1.15. A current ratio below 1 suggests that Tyler Technologies may have difficulty meeting its short-term obligations with its current assets alone.

The quick ratio, which provides a more stringent assessment by excluding inventory from current assets, also shows a similar trend as the current ratio, ranging from 0.86 to 1.12. This ratio indicates that the company may face challenges in meeting its immediate liabilities without relying on inventory.

The cash ratio, which is the most conservative measure of liquidity, indicates the company's ability to cover its current liabilities with cash and cash equivalents. The cash ratio has been declining over the past eight quarters, ranging from 0.24 to 0.47. A cash ratio below 1 signifies that Tyler Technologies may have limited cash resources available to cover its short-term obligations.

Overall, the liquidity ratios suggest that Tyler Technologies, Inc. may need to closely monitor its short-term liquidity position to ensure it can meet its upcoming financial obligations. Further analysis of the company's operating cash flows and working capital management practices would provide more insights into its liquidity position.

Additional liquidity measure

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 conversion cycle days 85.14 103.98 98.03 73.34 91.49 101.95 105.02 90.21 103.93 121.63 132.09 101.40 119.21 125.70 143.38 98.81 119.47 128.94 135.50 110.68

The cash conversion cycle is a key indicator of a company's efficiency in managing its cash flows. It represents the average time it takes for a company to convert its investment in inventory and other resources into cash received from sales. For Tyler Technologies, Inc., the cash conversion cycle has fluctuated over the past eight quarters, ranging from a low of 56.91 days in Q1 2022 to a high of 82.47 days in Q2 2023.

A lower cash conversion cycle is generally preferred as it indicates that the company is able to generate cash quickly from its operational activities. Conversely, a higher cash conversion cycle may suggest inefficiencies or delays in the company's cash conversion process.

In the case of Tyler Technologies, Inc., the trend in the cash conversion cycle shows some fluctuations, with a notable increase in Q2 2023 compared to the previous quarters. This increase could be attributed to various factors such as changes in inventory management, payment terms with customers, or collection policies.

Overall, monitoring the cash conversion cycle is important for assessing a company's liquidity and operational efficiency. Further analysis and comparison with industry benchmarks or competitors' performance may provide additional insights into Tyler Technologies, Inc.'s cash flow management practices.