Tyler Technologies Inc (TYL)

Debt-to-equity 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-equity ratio		0.20	0.36	0.56	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $596,206K ÷ $2,938,000K
= 0.20

The debt-to-equity ratio of Tyler Technologies, Inc. has shown a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. In 2019 and 2020, the company had a debt-to-equity ratio of 0.00, suggesting that there was no debt relative to equity during these periods.

However, starting from 2021, Tyler Technologies began to incorporate debt into its capital structure, with the ratio steadily increasing to 0.58 in 2021. The significant decrease to 0.22 in 2023 indicates a substantial reduction in the company's reliance on debt financing compared to its equity. This improved ratio reflects a healthier balance between debt and equity, potentially reducing financial risk and signaling better financial stability for the company.

Overall, the decreasing debt-to-equity ratio of Tyler Technologies, Inc. suggests a positive trend in the company's financial health and management of its capital structure in recent years.