Tyler Technologies Inc (TYL)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	165,919	164,240	161,458	194,820	146,527
Total stockholders’ equity	US$ in thousands	2,938,000	2,624,390	2,324,030	1,986,110	1,617,060
ROE		5.65%	6.26%	6.95%	9.81%	9.06%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $165,919K ÷ $2,938,000K
= 5.65%

Tyler Technologies, Inc.'s return on equity (ROE) has exhibited a declining trend over the past five years. In 2023, the ROE dropped to 5.65%, down from 6.26% in 2022 and 6.95% in 2021. This decline in ROE indicates that the company's ability to generate profits from shareholders' equity has weakened in recent years. Comparing the ROE to 2020 and 2019, where it stood at 9.81% and 9.06% respectively, the decreasing trend becomes more evident.

A lower ROE can be attributed to various factors such as declining profitability, inefficient use of assets, increased debt levels, or ineffective management of equity. Investors and analysts may view this declining trend as a potential cause for concern, as it suggests a less efficient allocation of resources by the company. It would be important for Tyler Technologies to assess the underlying reasons for the decline in ROE and take appropriate measures to improve shareholder returns in the future.