Tyler Technologies Inc (TYL)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,676,660	4,687,420	4,732,160	2,607,270	2,191,610
Total stockholders’ equity	US$ in thousands	2,938,000	2,624,390	2,324,030	1,986,110	1,617,060
Financial leverage ratio		1.59	1.79	2.04	1.31	1.36

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,676,660K ÷ $2,938,000K
= 1.59

The financial leverage ratio of Tyler Technologies, Inc. has shown fluctuations over the past five years. The ratio indicates the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio suggests that the company has a higher level of debt relative to its equity.

In 2023, the financial leverage ratio decreased to 1.59 from 1.79 in 2022, indicating a reduction in the company's reliance on debt for financing. This could signify improved financial health and stability with a lower risk of default.

Comparing 2023 to 2021 and 2019, where the ratio was 2.04 and 1.36 respectively, there has been a noticeable downward trend in the financial leverage ratio, showing a strategic shift towards a more conservative debt structure over time.

However, in 2020, the ratio was 1.31, the lowest in the five-year period. This suggests a relatively lower level of debt and potentially conservative financial management practices during that year.

Overall, the decreasing trend in the financial leverage ratio for Tyler Technologies, Inc. indicates a cautious approach towards debt financing, which could enhance the company's financial stability and reduce the risk associated with high leverage levels.