Texas Pacific Land Trust (TPL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover	—	17.15	0.66	0.60	0.52
Receivables turnover	—	—	—	—	—
Payables turnover	—	—	—	—	—
Working capital turnover	1.55	0.77	1.12	0.95	0.97

The activity ratios for Texas Pacific Land Trust indicate the efficiency with which the company manages its assets and working capital to generate revenue.

1. Inventory Turnover:
- The inventory turnover ratio measures how many times the company sells and replaces its inventory during a period.
- The trend in Texas Pacific Land Trust's inventory turnover indicates an improvement from 0.52 in 2020 to 0.66 in 2022, with a significant spike to 17.15 in 2023. However, there is missing data for 2024.
- The sudden increase in 2023 may imply either unusually high sales or a change in inventory management practices that led to the exceptionally high turnover.

2. Receivables Turnover:
- Receivables turnover ratio reflects how efficiently the company collects on its credit sales.
- The data shows that there are no available figures for this ratio from 2020 to 2024.
- The absence of receivables turnover data may suggest that Texas Pacific Land Trust does not have a significant portion of credit sales or that this information is not disclosed publicly.

3. Payables Turnover:
- Payables turnover ratio evaluates how quickly the company pays off its suppliers.
- The data reveals no information on payables turnover for the years 2020 to 2024.
- The lack of payables turnover data limits insight into the company's payment practices and relationships with suppliers.

4. Working Capital Turnover:
- The working capital turnover ratio measures the efficiency of using working capital to generate sales.
- Texas Pacific Land Trust's working capital turnover fluctuated over the years from 0.95 in 2021 to 1.55 in 2024.
- The increasing trend in working capital turnover indicates that the company is effectively utilizing its working capital to support revenue generation, especially in 2024 with a higher turnover ratio.

In conclusion, the available activity ratios for Texas Pacific Land Trust suggest varying levels of efficiency in managing inventory and working capital, while the lack of data for receivables and payables turnover limits a comprehensive analysis of the company's overall asset and cash management effectiveness.

Average number of days

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Days of inventory on hand (DOH)	days	—	21.28	554.48	612.22	705.44
Days of sales outstanding (DSO)	days	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—

The analysis of Texas Pacific Land Trust's activity ratios reveals the following trends:

1. Days of Inventory on Hand (DOH):
- In December 31, 2020, the DOH was 705.44 days.
- By December 31, 2024, the DOH had decreased significantly to an unspecified amount, which could indicate improved inventory management efficiency.
- Overall, the decreasing trend in DOH suggests that the company has been managing its inventory more effectively over the years.

2. Days of Sales Outstanding (DSO):
- The DSO data is unavailable for all the years provided, indicating a lack of information on the collection period for accounts receivable.
- Without DSO figures, it is challenging to assess the efficiency of the company in collecting its receivables.

3. Number of Days of Payables:
- Similar to DSO, the specific data for the number of days of payables is not provided for any of the years.
- The absence of information on payables turnover hinders the evaluation of the company's payment practices and relationships with suppliers.

In conclusion, while there is a positive indication of improved inventory management based on the decreasing trend in Days of Inventory on Hand, the lack of data for Days of Sales Outstanding and Number of Days of Payables limits the comprehensive analysis of Texas Pacific Land Trust's overall activity ratios and working capital efficiency.

Long-term

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Fixed asset turnover	5.76	7.05	7.81	5.66	3.82
Total asset turnover	0.57	0.55	0.76	0.59	0.53

The fixed asset turnover ratio for Texas Pacific Land Trust has shown a consistent upward trend over the five-year period from 2020 to 2024. Starting at 3.82 in 2020, the ratio increased to 7.05 in 2023 before slightly declining to 5.76 in 2024. This indicates that the company is generating more revenue for each dollar invested in fixed assets, reflecting improved efficiency in utilizing these assets over time.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from its total assets, has fluctuated over the same period. It increased from 0.53 in 2020 to a peak of 0.76 in 2022, before declining to 0.57 in 2024. Although there was variability in this ratio, the overall trend suggests that the company is effectively utilizing its total assets to generate revenue, albeit with some fluctuations.

In summary, Texas Pacific Land Trust has shown a positive trend in its fixed asset turnover ratio, indicating improved efficiency in utilizing fixed assets. The total asset turnover ratio has also demonstrated effectiveness in generating sales from total assets, despite some fluctuations. These ratios reflect the company's operational performance in managing its assets to generate revenue over the five-year period.