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Tyler Technologies earnings quality score

How much of the reported profit is backed by cash, and how many markers of managed earnings the filings show

Score67 / 100 · grade B · rank 465 of 1027

Tyler Technologies (TYL) scores 67 of 100 for earnings quality, grade B: rank 465 of 1027 companies and 100 of 203 in technology. It loses the most points on adjusted earnings 38% below GAAP, Montier C-score 3 of 5 checks failed, accruals of -6.2% of assets, lower than 67% of companies (profit backed by cash). It earns full or near-full marks for discretionary accruals of -0.5% of assets (modified Jones), smaller than most, Beneish M-score -2.84: clean (below −2.22), Dechow F-score 0.50 (normal).

What earned and lost points

ComponentWhat the filings showPointsOf
Accrualsaccruals of -6.2% of assets, lower than 67% of companies (profit backed by cash)1320
Beneish M-scoreBeneish M-score -2.84: clean (below −2.22)1515
Dechow F-scoreDechow F-score 0.50 (normal)1515
Montier C-scoreMontier C-score 3 of 5 checks failed615
Discretionary accrualsdiscretionary accruals of -0.5% of assets (modified Jones), smaller than most910
Piotroski F-scorePiotroski F-score 6 of 9710
Non-GAAP gapadjusted earnings 38% below GAAP010
Earnings smoothnessprofit steadier than cash flow (smoothness 0.41)25
TYL: share of the available points, by componentTYL: share of the available points, by componentAccruals67%Discretionary accruals91%Beneish M-score100%Dechow F-score100%Montier C-score40%Piotroski F-score67%Earnings smoothness42%

How the score is built

Eight published measures, each scored against the whole universe or on its own scale and weighted: accruals 20, discretionary accruals 10, Beneish M 15, Dechow F 15, Montier C 15, Piotroski F 10, the non-GAAP gap 10, smoothness 5. A measure that cannot be computed (Beneish for a bank, say) drops out and the rest is rescaled, so every company is scored on what applies to it.

Every company ranked → The full quality workbench, live → Tyler Technologies: cash flow →

Computed from the companies’ own XBRL filings (latest fiscal year) by published formulas; a statistical screen, not an audit or an accusation. A low score means the reported profit shows more of the markers of managed or low-quality earnings than its peers. Not investment advice.