Tyler Technologies Inc (TYL)

Solvency ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Debt-to-assets ratio 0.12 0.12 0.12 0.13 0.13 0.15 0.18 0.18 0.20 0.22 0.26 0.27 0.28 0.17 0.20 0.18 0.00 0.00 0.00 0.00
Debt-to-capital ratio 0.15 0.15 0.16 0.16 0.17 0.20 0.23 0.24 0.27 0.29 0.33 0.35 0.36 0.27 0.31 0.22 0.00 0.00 0.00 0.00
Debt-to-equity ratio 0.18 0.18 0.19 0.20 0.20 0.25 0.30 0.31 0.36 0.41 0.50 0.54 0.56 0.37 0.44 0.29 0.00 0.00 0.00 0.00
Financial leverage ratio 1.53 1.53 1.54 1.52 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

Tyler Technologies Inc has shown a stable and healthy solvency position over the years based on its solvency ratios. The debt-to-assets ratio, which measures the proportion of debt relative to total assets, has been relatively low and consistent, ranging from 0% to 28% over the observed period. This indicates that the company has a low level of debt compared to its total assets.

Similarly, the debt-to-capital ratio, which indicates the proportion of debt relative to total capital (debt plus equity), has also been relatively low and stable, ranging from 0% to 36%. This suggests that Tyler Technologies relies more on equity financing rather than debt financing for its operations.

The debt-to-equity ratio, which compares total debt to total equity, shows a similar trend of low and stable ratios varying between 0% and 56%. This indicates that Tyler Technologies has maintained a healthy balance between debt and equity in its capital structure.

Additionally, the financial leverage ratio, which reflects the company's financial risk by comparing total assets to equity, has shown consistency around the range of 1.30 to 2.20, indicating that the company has been effectively managing its leverage and financial risk.

Overall, based on the solvency ratios analyzed, Tyler Technologies Inc appears to have a strong solvency position with low and stable levels of debt relative to assets, capital, and equity, as well as a balanced financial leverage ratio throughout the observed period.

Coverage ratios

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Interest coverage 50.50 32.72 19.75 13.27 9.25 7.56 6.63 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

Tyler Technologies Inc's interest coverage ratio has exhibited fluctuations over the analyzed periods. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of meeting its interest payment obligations.

From March 31, 2020 to June 30, 2021, Tyler Technologies Inc's interest coverage ratio showed a consistently strong performance with values ranging from 34.93 to 530.66. This indicates a robust ability to cover interest expenses with earnings during this period.

However, from June 30, 2021 onwards, the interest coverage ratio declined significantly, dropping to levels as low as 6.51 by March 31, 2023. This downward trend may suggest potential challenges in meeting interest obligations with operating earnings during these periods.

There was a slight improvement in the interest coverage ratio by the end of the analysis period, with a ratio of 50.50 on December 31, 2024. It is important for investors and creditors to closely monitor the interest coverage ratio of Tyler Technologies Inc to assess the company's financial health and its ability to service its debt obligations.