Tyler Technologies Inc (TYL)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 299,526 | 218,537 | 214,249 | 180,735 | 172,926 |
| Long-term debt | US$ in thousands | 597,934 | 596,206 | 957,389 | 1,311,280 | 0 |
| Total stockholders’ equity | US$ in thousands | 3,388,420 | 2,938,000 | 2,624,390 | 2,324,030 | 1,986,110 |
| Return on total capital | 7.51% | 6.18% | 5.98% | 4.97% | 8.71% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $299,526K ÷ ($597,934K + $3,388,420K)
= 7.51%
Tyler Technologies Inc's return on total capital has fluctuated over the past five years, starting at 8.71% in December 31, 2020, decreasing to 4.97% by December 31, 2021, and gradually improving to 7.51% by December 31, 2024.
The downward trend in 2021 might have signaled challenges in generating adequate returns relative to the total capital employed. However, the subsequent years show a positive trajectory, indicating potential improvements in the company's capital efficiency.
Overall, the return on total capital for Tyler Technologies Inc has shown variability but ended on a relatively positive note in December 31, 2024, suggesting a potential enhancement in the company's ability to generate profits from its total capital base.
Peer comparison
Dec 31, 2024