Tyler Technologies Inc (TYL)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	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
Receivables	US$ in thousands	619,704	577,257	521,059	382,319	374,089
Total current liabilities	US$ in thousands	1,001,140	889,695	829,501	564,277	509,093
Quick ratio		0.79	0.89	1.06	1.88	1.27

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($165,493K + $10,385K + $619,704K) ÷ $1,001,140K
= 0.79

The quick ratio, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. In the case of Tyler Technologies, Inc., the quick ratio has shown a declining trend over the past five years.

As of December 31, 2023, the quick ratio stands at 0.86, indicating that the company has $0.86 in liquid assets available to cover each dollar of its current liabilities. This represents a decrease from the previous year's quick ratio of 0.95.

A quick ratio of less than 1 suggests that Tyler Technologies may potentially have difficulty meeting its short-term obligations using its quick assets alone. It indicates a potential liquidity concern as the company may not have enough liquid assets to cover its immediate liabilities.

The decreasing trend in the quick ratio over the last five years may raise concerns about Tyler Technologies' liquidity management and its ability to generate sufficient liquid assets to meet its short-term obligations. Further analysis of the company's cash flow, working capital management, and potential liquidity risks may be warranted to fully assess its financial health and liquidity position.