The following are the financial ratios for the company, Tyler Technologies Inc.
Profit Ratio
Gross profit/ Net sales
93.48 million/194.50 million
The gross profit ratio is 0.4806169666
Liquidity Ratio
Current assets/ current liabilities
36.95 million/22.26 million
The liquidity ratio is 1.6599
Debt Ratio
Total liabilities/total assets
22.26 million/36.95 million
The debt ratio is 0.6024
Market Ratio
Net earnings/number of shares
36.42 million/36.63 million
The market ratio is 0.99426
Analysis of the Ratios
Tyler Technologies Inc.is a technology company that deals in technology solutions, which includes hardware and software. The company is listed on the New York Stocks Exchange. From the latest financial statement, the ratios show that the firm is on a growth trend (Pew Tan, Plowman, & Hancock, 2007). The profit ratio and the debt ratio indicate that the firm is doing well in financial management. In fact, the ratios mean that Tyler Technologies will have greater financial returns in the future if this trend continues.
When compared to the current technology industry, the company performance gives a reflection of what is happening (Penman & Penman, 2007). In essence, the technology industry in the country has been growing, and companies involved in the sector have been reporting profits and increased revenues in the last three years.
In essence, the financial ratios of Tyler Technologies show that the firm is financially healthy and on a good path. The debt ratio indicates that the current debt of the company is sustainable as it is within accepted standards. Apart from giving the financial standing of the company, the ratios also offer a basis for policy making for the company in matters regarding financial stability, profitability, and asset management. Hence, the organization’s management should continue with the current strategies, which will propel the firm to great profitability in the future.
References
Penman, S. H., & Penman, S. H. (2007). Financial statement analysis and security valuation (p. 476). New York: McGraw-Hill.
Pew Tan, H., Plowman, D., & Hancock, P. (2007). Intellectual capital and financial returns of companies. Journal of Intellectual Capital, 8(1), 76-95.
