Tyler Technologies Inc (TYL)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 44.66% | 43.03% | 45.23% | 48.58% | 47.58% |
| Operating profit margin | 11.33% | 11.76% | 11.52% | 15.49% | 14.39% |
| Pretax margin | 10.28% | 10.30% | 10.13% | 15.68% | 14.71% |
| Net profit margin | 8.61% | 9.02% | 10.29% | 17.45% | 13.49% |
Tyler Technologies, Inc.'s profitability ratios have displayed some fluctuations over the past five years. The gross profit margin, representing the percentage of revenue remaining after direct production costs, has ranged from 42.72% to 48.58%. This ratio saw a slight improvement in 2023 compared to the previous year, reaching 44.77%.
The operating profit margin, which indicates the company's ability to generate profit from its core operations, has fluctuated between 11.20% and 15.49% over the same period. In 2023, the operating profit margin decreased slightly to 11.20% from 11.58% in 2022.
The pretax margin, reflecting the proportion of profit before taxes, has varied from 9.98% to 15.68% in the last five years. In 2023, the pretax margin remained relatively stable at 10.16%, showing only a marginal change from the previous year.
The net profit margin, which reveals the percentage of revenue that translates into profit for shareholders after all expenses, has shown a wider range of 8.50% to 17.45%. In 2023, the net profit margin decreased to 8.50% from 8.88% in 2022.
Overall, Tyler Technologies, Inc.'s profitability ratios indicate some level of variability in its ability to generate profits over the past five years, with a general trend of slight decreases in margins in the most recent year. It is important for the company to closely monitor and manage its costs and revenue streams to maintain and improve its profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.67% | 4.57% | 3.82% | 6.63% | 7.13% |
| Return on assets (ROA) | 3.55% | 3.50% | 3.41% | 7.47% | 6.69% |
| Return on total capital | 6.18% | 5.98% | 4.97% | 8.71% | 9.67% |
| Return on equity (ROE) | 5.65% | 6.26% | 6.95% | 9.81% | 9.06% |
Tyler Technologies, Inc. has shown a consistent trend of declining profitability ratios over the past five years. The Operating Return on Assets (Operating ROA) has ranged from 3.82% to 7.13%, with a recent decrease to 4.67% in 2023. This indicates that the company is generating operating income less efficiently in relation to its total assets.
Similarly, the Return on Assets (ROA) has also exhibited a downward trajectory, fluctuating between 3.41% and 7.47%. As of 2023, the ROA stands at 3.55%, signaling a lower profitability in generating earnings from its total assets.
The Return on Total Capital has followed a similar pattern, declining from 8.71% in 2020 to 6.10% in 2023. This ratio indicates the efficiency of the company in generating returns from both debt and equity capital employed.
Finally, the Return on Equity (ROE) has shown a downward trend as well, dropping from 9.81% in 2020 to 5.65% in 2023. The ROE measures the company's ability to generate profits from shareholders' equity.
Overall, Tyler Technologies, Inc. is experiencing decreasing profitability ratios, which may raise concerns about its operational efficiency and ability to generate returns for its investors. Further analysis of the company's financial performance and strategic decisions may be necessary to address these declining trends.