Tyler Technologies Inc (TYL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.13 | 0.20 | 0.28 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.17 | 0.27 | 0.36 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.20 | 0.36 | 0.56 | 0.00 | 0.00 |
| Financial leverage ratio | 1.59 | 1.79 | 2.04 | 1.31 | 1.36 |
Tyler Technologies, Inc. has shown a consistent improvement in its solvency ratios over the past five years, indicating a strengthening financial position. The debt-to-assets ratio has decreased from 0.28 in 2021 to 0.14 in 2023, reflecting a lower reliance on debt to finance its assets. Similarly, the debt-to-capital ratio has improved from 0.37 in 2021 to 0.18 in 2023, suggesting that the company has reduced its debt relative to its total capital.
The trend is also evident in the debt-to-equity ratio, which has decreased from 0.58 in 2021 to 0.22 in 2023, indicating a lower level of debt compared to equity. Furthermore, the financial leverage ratio has decreased from 2.04 in 2021 to 1.59 in 2023, demonstrating that Tyler Technologies has become less leveraged over time.
Overall, the declining trend in these solvency ratios suggests that Tyler Technologies has effectively managed its debt levels and improved its financial stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.25 | 7.55 | 7.76 | 170.71 | 45.05 |
Tyler Technologies, Inc. has demonstrated a consistently strong interest coverage ratio over the past three years. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt using its operating income.
In 2023, the interest coverage ratio improved to 9.25, indicating that the company's operating income was able to cover its interest expenses approximately 9.25 times. This increase in the interest coverage ratio from 2022's 7.55 suggests that Tyler Technologies has enhanced its ability to service its debt obligations efficiently.
The consistent high interest coverage ratios from 2021 (7.76) to 2023 reflect a healthy financial position, reassuring creditors about the company's ability to meet its debt obligations. The absence of data for 2020 and 2019 limits the trend analysis, but based on the available data, Tyler Technologies appears to have a strong financial footing with sufficient operating income to cover its interest expenses.