Tyler Technologies Inc (TYL)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	218,537	214,249	180,735	172,926	156,367
Interest expense	US$ in thousands	23,629	28,379	23,298	1,013	3,471
Interest coverage		9.25	7.55	7.76	170.71	45.05

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $218,537K ÷ $23,629K
= 9.25

To analyze Tyler Technologies, Inc.'s interest coverage over the past five years, we can observe a consistent upward trend from 2019 to 2022. The interest coverage ratio increased from 7.55 in 2022 to 9.25 in 2023, indicating that the company's ability to cover interest expenses with its operating income improved over the period.

However, it is noted that data is missing for 2020, so there is a gap in the analysis for that year. It is essential to investigate the reason for this missing data to gain a complete understanding of the company's financial performance.

Overall, the trend of increasing interest coverage ratios is a positive sign as it suggests that Tyler Technologies has been effectively managing its interest expenses relative to its operating income, which could indicate financial stability and viability. Continued monitoring of the interest coverage ratio in the coming years will be crucial to assess the company's financial health and its ability to meet its debt obligations.