Tyler Technologies Inc (TYL)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
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
Debt-to-capital ratio		0.17	0.27	0.36	0.00	0.00

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $596,206K ÷ ($596,206K + $2,938,000K)
= 0.17

The debt-to-capital ratio of Tyler Technologies, Inc. has shown a decreasing trend over the past five years, indicating an improvement in the company's capital structure and financial leverage.

In 2023, the debt-to-capital ratio stands at 0.18, signaling that debt accounts for 18% of the company's capital structure, while equity represents 82%. This suggests that Tyler Technologies relies more on equity financing rather than debt to support its operations and growth.

Comparing this to the previous year, where the ratio was 0.27, we observe a notable reduction in the reliance on debt for funding. This trend continues over the past five years, with the ratio steadily decreasing from 0.37 in 2021 to 0.00 in 2020 and 2019.

The significant decline in the debt-to-capital ratio indicates that Tyler Technologies has been successful in managing its debt levels relative to its total capital. This may be viewed positively by investors and creditors as it signifies lower financial risk and potentially improved financial stability for the company.

Overall, the decreasing trend in the debt-to-capital ratio suggests that Tyler Technologies has been prudent in its financial management, gradually reducing its reliance on debt financing and improving its overall capital structure.