Tyler Technologies Inc (TYL)
Quick ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 744,721 | 165,493 | 173,857 | 309,171 | 603,623 |
Short-term investments | US$ in thousands | 23,257 | 10,385 | 37,030 | 52,300 | 72,187 |
Receivables | US$ in thousands | 587,634 | 619,704 | 577,257 | 521,059 | 382,319 |
Total current liabilities | US$ in thousands | 1,065,610 | 1,001,140 | 889,695 | 829,501 | 564,277 |
Quick ratio | 1.27 | 0.79 | 0.89 | 1.06 | 1.88 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($744,721K
+ $23,257K
+ $587,634K)
÷ $1,065,610K
= 1.27
The quick ratio of Tyler Technologies Inc has shown some fluctuations over the past five years. As of December 31, 2020, the quick ratio stood at a healthy 1.88, indicating a strong ability to cover its short-term liabilities with its most liquid assets. However, this ratio declined to 1.06 by December 31, 2021, suggesting a slight decrease in liquidity.
By December 31, 2022, the quick ratio decreased further to 0.89, signaling a potential difficulty in meeting short-term obligations with quick assets alone. This trend continued into the following years, with the quick ratio dropping to 0.79 by December 31, 2023, indicating a heightened risk in fulfilling immediate financial obligations.
However, there was a notable improvement in the quick ratio by December 31, 2024, where it increased to 1.27. This uptick suggests an enhanced ability to cover short-term liabilities with liquid assets compared to the previous year, although it still remains below the benchmark of 1.5, which is generally considered as a safe level of liquidity.
Overall, the fluctuating trend in Tyler Technologies Inc's quick ratio over the analyzed period may indicate varying levels of liquidity and ability to meet short-term obligations, warranting further investigation into the company's financial performance and management of working capital.
Peer comparison
Dec 31, 2024