Tyler Technologies Inc (TYL)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 218,537 | 214,249 | 180,735 | 172,926 | 156,367 |
| Long-term debt | US$ in thousands | 596,206 | 957,389 | 1,311,280 | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 2,938,000 | 2,624,390 | 2,324,030 | 1,986,110 | 1,617,060 |
| Return on total capital | 6.18% | 5.98% | 4.97% | 8.71% | 9.67% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $218,537K ÷ ($596,206K + $2,938,000K)
= 6.18%
Tyler Technologies, Inc.'s return on total capital has fluctuated over the past five years. The return on total capital was the highest in 2019 at 9.67% and decreased in the following years, reaching a low of 4.93% in 2021. This indicates that the company's ability to generate earnings from its total capital has trended downwards in recent years. However, there was a slight improvement in 2022 and 2023, with returns of 5.93% and 6.10% respectively. Overall, Tyler Technologies, Inc. should continue to monitor and potentially improve its efficiency in utilizing total capital to generate returns for its shareholders.
Peer comparison
Dec 31, 2023