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.