Tyler Technologies Inc (TYL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.00 | 0.00 | 0.01 | 0.04 |
| Debt-to-capital ratio | 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 | 0.00 | 0.00 | 0.01 | 0.06 |
| Debt-to-equity ratio | 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 | 0.00 | 0.00 | 0.01 | 0.06 |
| 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 |
Tyler Technologies, Inc. has shown a consistent improvement in its solvency ratios over the past eight quarters. The debt-to-assets ratio has decreased from 0.21 in Q4 2022 to 0.14 in Q4 2023, indicating a stronger ability to cover its obligations with its assets. Similarly, the debt-to-capital and debt-to-equity ratios have also declined steadily over this period, reflecting a decreasing reliance on debt financing and a stronger financial position in terms of capital and equity.
The financial leverage ratio, which measures the proportion of debt in the company's capital structure, has also shown a positive trend, decreasing from 1.79 in Q4 2022 to 1.59 in Q4 2023. This indicates that Tyler Technologies has been reducing its reliance on debt to fund its operations and investments, which is generally viewed favorably by investors and creditors.
Overall, the improving solvency ratios suggest that Tyler Technologies has been effectively managing its debt levels and financial leverage, which bodes well for the company's ability to meet its financial obligations in the long run.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Tyler Technologies, Inc.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 6.54 to 9.25. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating income. A ratio above 1 indicates that the company is generating enough operating income to cover its interest expenses.
In the most recent quarter (Q4 2023), Tyler Technologies, Inc. had an interest coverage ratio of 9.25, indicating a strong ability to meet its interest obligations. This is a positive sign for investors and creditors as it suggests that the company has a comfortable buffer to cover its interest expenses.
Overall, Tyler Technologies, Inc. has maintained a healthy interest coverage ratio over the quarters analyzed, reflecting a sound financial position in terms of meeting its interest payments. However, it is important to continue monitoring this ratio in future periods to assess the sustainability of the company's ability to cover its interest expenses.