Tyler Technologies Inc (TYL)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	299,526	218,537	214,249	180,735	172,926
Revenue	US$ in thousands	2,137,800	1,928,120	1,821,820	1,568,990	1,116,660
Operating profit margin		14.01%	11.33%	11.76%	11.52%	15.49%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $299,526K ÷ $2,137,800K
= 14.01%

Tyler Technologies Inc's operating profit margin has shown fluctuations over the past five years. In December 2020, the operating profit margin was 15.49%, indicating that the company generated 15.49 cents of operating profit for every dollar of sales. However, by December 2021, the operating profit margin decreased to 11.52%, suggesting that the company's profitability from operations declined.

In the subsequent years, the operating profit margin continued to fluctuate, reaching 11.76% by December 2022 and dropping slightly to 11.33% by December 2023. This indicates that Tyler Technologies Inc's ability to generate profit from its core operations faced challenges during these periods.

Despite the fluctuations, there was a noticeable improvement in the operating profit margin by December 2024, where it increased to 14.01%. This suggests that the company may have implemented strategies to enhance operational efficiency or improve profitability, leading to a higher operating profit margin.

Overall, Tyler Technologies Inc's operating profit margin has experienced variability in recent years, indicating potential changes in the company's operational performance and profitability. Vigilant monitoring of this ratio is crucial to assess the company's ability to generate profit from its core business activities.