Tyler Technologies Inc (TYL)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.15 | 0.17 | 0.27 | 0.36 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $597,934K ÷ ($597,934K + $3,388,420K)
= 0.15
The debt-to-capital ratio of Tyler Technologies Inc has shown a decreasing trend over the past five years. It was at 0.00 as of December 31, 2020, indicating a debt-free capital structure. However, the ratio increased to 0.36 by December 31, 2021, suggesting that the company started to utilize debt to finance its operations and growth.
Subsequently, there was a notable decline in the ratio to 0.27 by December 31, 2022, and further to 0.17 by December 31, 2023, indicating a decreasing reliance on debt relative to the company's capital base. Finally, as of December 31, 2024, the debt-to-capital ratio stood at 0.15, demonstrating a conservative capital structure with lower debt levels compared to total capital.
Overall, the decreasing trend in the debt-to-capital ratio of Tyler Technologies Inc over the period reflects a strategic approach towards managing debt and maintaining a healthy balance between debt and equity in the company's capital structure.
Peer comparison
Dec 31, 2024