Tyler Technologies Inc (TYL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 0.13 | 0.20 | 0.28 | 0.00 |
| Debt-to-capital ratio | 0.15 | 0.17 | 0.27 | 0.36 | 0.00 |
| Debt-to-equity ratio | 0.18 | 0.20 | 0.36 | 0.56 | 0.00 |
| Financial leverage ratio | 1.53 | 1.59 | 1.79 | 2.04 | 1.31 |
Tyler Technologies Inc's solvency ratios have shown improvement over the years based on the provided data.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has gradually decreased from 0.28 in 2021 to 0.12 in 2024. This indicates that Tyler Technologies is relying less on debt to finance its assets.
2. Debt-to-capital ratio: The debt-to-capital ratio has followed a similar trend, declining from 0.36 in 2021 to 0.15 in 2024. This shows that the proportion of debt in the company's capital structure has been decreasing.
3. Debt-to-equity ratio: Tyler Technologies' debt-to-equity ratio has also decreased from 0.56 in 2021 to 0.18 in 2024. This suggests that the company has been reducing its reliance on debt financing in relation to equity.
4. Financial leverage ratio: The financial leverage ratio has shown a consistent decline from 2.04 in 2021 to 1.53 in 2024. This indicates that Tyler Technologies has been effectively managing its debt levels in relation to its assets and equity.
Overall, the decreasing trend in these solvency ratios reflects Tyler Technologies' improving financial stability and reduced dependence on debt financing, which may positively impact the company's long-term financial health and risk management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 50.50 | 9.25 | 7.55 | 7.76 | 170.71 |
Tyler Technologies Inc's interest coverage ratio has exhibited significant fluctuations over the past five years.
As of December 31, 2020, the interest coverage ratio was exceptionally high at 170.71, indicating the company's strong ability to meet its interest obligations with its operating income. However, there was a substantial decrease in the interest coverage ratio to 7.76 by December 31, 2021, and a further slight decrease to 7.55 by December 31, 2022. These declining ratios suggest that Tyler Technologies may be experiencing challenges in generating sufficient operating income to cover its interest expenses.
Despite the decline in the previous two years, the interest coverage ratio improved to 9.25 by December 31, 2023, indicating a slight recovery in the company's ability to cover its interest payments. By December 31, 2024, the interest coverage ratio surged to 50.50, demonstrating a significant improvement and a strong indication of Tyler Technologies' ability to comfortably meet its interest obligations with its operating income.
Overall, the fluctuation in Tyler Technologies Inc's interest coverage ratio over the past five years signals a mix of challenges and improvements in the company's financial performance and debt servicing capabilities. Continued monitoring of this ratio will be essential to assess the company's ongoing ability to manage its interest expenses effectively.