Tyler Technologies Inc (TYL)

Debt-to-capital ratio

		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
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
Debt-to-capital ratio		0.17	0.20	0.23	0.24	0.27	0.29	0.33	0.35	0.36	0.27	0.31	0.22	0.00	0.00	0.00	0.00	0.00	0.00	0.01	0.06

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 been showing a decreasing trend over the last eight quarters. In Q4 2023, the ratio stood at 0.18, indicating that only 18% of the company's capital is financed through debt, with the remaining 82% financed through equity. This suggests a strong and healthy financial position with a lower reliance on debt for funding operations and investments.

Comparing to the same quarter in the previous year, where the ratio was at 0.27, there has been a significant improvement. This downward trend in the debt-to-capital ratio implies that Tyler Technologies, Inc. has been steadily reducing its debt levels relative to its overall capital base.

Overall, the decreasing debt-to-capital ratio is a positive signal for investors and creditors as it indicates improved financial stability and reduced financial risk for the company. However, it is essential to monitor future trends in this ratio to ensure that Tyler Technologies maintains a prudent balance between debt and equity financing.