Tyler Technologies Inc (TYL)

Quick ratio

		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	US$ in thousands	165,493	131,486	118,764	130,845	173,857	185,927	253,062	243,262	309,171	234,128	216,773	1,250,750	603,623	518,685	351,336	301,985	232,682	161,438	11,187	39,437
Short-term investments	US$ in thousands	10,385	11,623	19,100	28,810	37,030	39,360	34,466	44,973	52,300	49,355	51,223	59,030	72,187	55,595	52,352	38,250	39,399	32,931	31,184	36,958
Receivables	US$ in thousands	619,704	623,613	638,726	508,683	577,257	561,780	597,560	501,200	521,059	538,119	584,156	330,824	382,319	362,667	405,731	318,144	374,089	347,982	381,379	298,980
Total current liabilities	US$ in thousands	1,001,140	909,034	854,217	835,028	889,695	812,248	833,859	766,460	829,501	816,225	765,779	525,356	564,277	535,045	494,262	445,055	509,093	476,814	453,732	403,380
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

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 measures Tyler Technologies, Inc.'s ability to meet its short-term obligations with its most liquid assets. A quick ratio of less than 1 suggests that the company may have difficulty covering its current liabilities with its current assets excluding inventory.

Looking at the trend over the past eight quarters, we can observe fluctuations in the quick ratio. The quick ratio decreased from 1.06 in Q3 2022 to 0.86 in Q4 2023, indicating a decline in Tyler Technologies' ability to meet its short-term obligations without relying on inventory.

Generally, a quick ratio of 1 or higher is considered healthy, as it implies that the company can cover its current liabilities with its most liquid assets. However, a decreasing trend in the quick ratio may raise concerns about the company's liquidity and ability to manage its short-term financial obligations effectively.

It is recommended that further analysis be conducted to understand the underlying factors contributing to the fluctuation in Tyler Technologies, Inc.'s quick ratio and to assess the company's overall liquidity position in more detail.