Tyler Technologies Inc (TYL)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	218,537	211,500	208,478	203,361	214,249	221,590	216,861	198,395	180,735	180,719	174,191	177,241	172,926	170,047	160,444	155,769	156,367	150,137	147,669	148,145
Interest expense (ttm)	US$ in thousands	-761	3,592	18,658	31,259	28,379	25,263	21,401	27,625	22,904	17,917	12,521	334	502	2,252	4,002	4,460	4,918	3,938	2,958	3,019
Interest coverage		—	58.88	11.17	6.51	7.55	8.77	10.13	7.18	7.89	10.09	13.91	530.66	344.47	75.51	40.09	34.93	31.79	38.13	49.92	49.07

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $218,537K ÷ $-761K
= —

Tyler Technologies, Inc.'s interest coverage ratio has shown some fluctuation over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations on outstanding debt from its operating income.

In Q4 2023, the interest coverage ratio was 9.25, indicating that the company's operating income was 9.25 times higher than its interest expenses. This reflects a strong ability to cover interest payments and suggests the company has a comfortable buffer to handle its debt obligations.

Although there was a slight decrease in Q3 2023 to 7.03, the ratio remained above 7, which is generally considered healthy, demonstrating Tyler Technologies' consistent ability to meet its interest expenses from operating earnings.

Throughout the previous quarters, the interest coverage ratio has generally been above 6, indicating that the company's earnings are sufficient to cover its interest payments. The slight fluctuations in the ratio indicate some variability in the company's ability to cover interest expenses, but the overall trend seems to be positive.

Overall, based on the interest coverage ratios presented, Tyler Technologies, Inc. appears to have a strong financial position with a consistent ability to meet its interest obligations from operating income.