Tyler Technologies Inc (TYL)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	218,537	211,500	208,478	203,361	214,249	221,590	216,861	198,395	180,735	180,719	174,191	177,241	172,926	170,047	160,444	155,769	156,367	150,137	147,669	148,145
Long-term debt	US$ in thousands	596,206	705,170	839,074	838,517	957,389	1,046,190	1,233,090	1,292,180	1,311,280	805,535	927,559	591,483	0	0	0	0	0	0	15,000	85,000
Total stockholders’ equity	US$ in thousands	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	1,617,060	1,519,600	1,421,630	1,358,740
Return on total capital		6.18%	5.94%	5.78%	5.77%	5.98%	6.17%	5.87%	5.39%	4.97%	6.01%	5.74%	6.68%	8.71%	8.96%	8.77%	9.09%	9.67%	9.88%	10.28%	10.26%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $218,537K ÷ ($596,206K + $2,938,000K)
= 6.18%

Based on the data provided, Tyler Technologies, Inc.'s return on total capital has been relatively stable over the past eight quarters, ranging from 5.35% to 6.12%. The return on total capital shows how efficiently the company is generating profits from its total capital employed, including both debt and equity.

The company's return on total capital averaged around 5.90% over the period, indicating that for every dollar of total capital employed, Tyler Technologies generated approximately 5.90 cents in profits. This demonstrates the company's ability to generate a reasonable return relative to the amount of capital invested in the business.

A consistent return on total capital suggests that Tyler Technologies is effectively utilizing its capital to generate profits and create value for its shareholders. However, it would be beneficial to compare this ratio with industry benchmarks to assess the company's performance relative to its peers and determine if there are opportunities for improvement.