Tyler Technologies Inc (TYL)

Financial leverage 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
Total assets	US$ in thousands	4,676,660	4,637,430	4,635,550	4,555,640	4,687,420	4,675,370	4,787,050	4,723,810	4,732,160	4,682,940	4,641,000	3,231,790	2,607,270	2,492,160	2,382,600	2,219,380	2,191,610	2,055,090	1,949,430	1,909,300
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
Financial leverage ratio		1.59	1.63	1.67	1.70	1.79	1.84	1.95	1.98	2.04	2.13	2.20	1.57	1.31	1.31	1.30	1.30	1.36	1.35	1.37	1.41

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 been decreasing over the past eight quarters, indicating a trend of reduced financial leverage. The ratio has declined from 1.98 in Q1 2022 to 1.59 in Q4 2023. This suggests that the company has been relying less on debt to finance its operations and activities.

A lower financial leverage ratio generally indicates a lower level of financial risk as the company is less dependent on debt to support its business. It can also reflect a stronger financial position and better ability to meet debt obligations. Conversely, a higher financial leverage ratio might suggest higher risk and lower financial stability due to increased reliance on debt financing.

Overall, the decreasing trend in Tyler Technologies' financial leverage ratio implies a positive shift towards a more conservative capital structure and potentially a stronger financial position.