Tyler Technologies Inc (TYL)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 263,026 | 165,919 | 164,240 | 161,458 | 194,820 |
| Total stockholders’ equity | US$ in thousands | 3,388,420 | 2,938,000 | 2,624,390 | 2,324,030 | 1,986,110 |
| ROE | 7.76% | 5.65% | 6.26% | 6.95% | 9.81% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $263,026K ÷ $3,388,420K
= 7.76%
Tyler Technologies Inc's Return on Equity (ROE) has been showing a declining trend over the years, starting at 9.81% as of December 31, 2020, and decreasing to 6.95% by the end of 2021, further dropping to 6.26% by the end of 2022, then to 5.65% by the end of 2023 before recovering slightly to 7.76% by the end of 2024.
The downward trend in ROE indicates a decreasing ability of the company to generate profits from its shareholders' equity. A declining ROE could be a cause for concern as it may imply inefficiency in utilizing equity to generate returns for shareholders.
Tyler Technologies Inc may need to investigate the reasons behind the decreasing ROE, such as low profit margins, ineffective asset utilization, high debt levels, or other factors impacting profitability. It may be beneficial for the company to focus on improving operational efficiency, cost management, and revenue generation to enhance its ROE and create more value for shareholders in the future.
Peer comparison
Dec 31, 2024