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.