Tyler Technologies Inc (TYL)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 5,180,020 | 4,676,660 | 4,687,420 | 4,732,160 | 2,607,270 |
| Operating ROA | 5.78% | 4.67% | 4.57% | 3.82% | 6.63% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $299,526K ÷ $5,180,020K
= 5.78%
Tyler Technologies Inc's operating return on assets (ROA) has shown a fluctuating trend over the past five years.
- In December 31, 2020, the operating ROA was at 6.63%, indicating that the company generated 6.63 cents of operating profit for every dollar of assets employed.
- However, in the following year, the operating ROA decreased to 3.82%, suggesting a decline in the company's ability to generate operating profits from its assets.
- By December 31, 2022, the operating ROA improved to 4.57%, showing a slight recovery in the company's efficiency in utilizing its assets to generate operating income.
- Over the next year, the operating ROA further increased to 4.67%, indicating a continued positive trend in asset utilization and profitability.
- In the most recent year, as of December 31, 2024, Tyler Technologies Inc's operating ROA reached 5.78%, marking a significant improvement compared to the previous years.
Overall, the fluctuation in Tyler Technologies Inc's operating return on assets reflects varying levels of efficiency in generating operating income relative to the company's asset base over the five-year period. It is essential for the company to maintain or improve this ratio to ensure optimal utilization of assets and sustainable profitability.
Peer comparison
Dec 31, 2024