Tyler Technologies Inc (TYL)

Return on equity (ROE)

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020
Net income (ttm) US$ in thousands 263,026 236,708 207,822 189,214 165,919 158,093 164,315 155,131 164,240 187,945 178,882 164,466 161,458 160,770 155,884 184,246 194,820 187,516 188,622 166,729
Total stockholders’ equity US$ in thousands 3,388,420 3,275,110 3,132,110 3,023,140 2,938,000 2,852,850 2,768,250 2,686,130 2,624,390 2,547,300 2,458,330 2,387,730 2,324,030 2,200,770 2,107,990 2,060,990 1,986,110 1,898,140 1,829,330 1,712,830
ROE 7.76% 7.23% 6.64% 6.26% 5.65% 5.54% 5.94% 5.78% 6.26% 7.38% 7.28% 6.89% 6.95% 7.31% 7.39% 8.94% 9.81% 9.88% 10.31% 9.73%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $263,026K ÷ $3,388,420K
= 7.76%

Tyler Technologies Inc's return on equity (ROE) has shown a gradual decline over the analyzed periods, starting at 9.73% on March 31, 2020, and reaching its lowest point of 5.54% on September 30, 2023, before showing a slight recovery. The downward trend in ROE indicates a decrease in the company's profitability in generating returns for its shareholders' equity.

The decrease in ROE could be attributed to various factors such as declining profitability, inefficient use of assets, or increasing financial leverage. It is essential for investors to monitor the trend in ROE as it reflects the efficiency of the company in utilizing its shareholders' equity to generate profits. Tyler Technologies Inc may need to focus on improving its operational efficiency, cost management, and revenue generation strategies to enhance its ROE in the future.