Texas Pacific Land Trust (TPL)
Days of inventory on hand (DOH)
| 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 | |
| DOH | days | — | 21.28 | 554.48 | 612.22 | 705.44 |
December 31, 2024 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ —
= —
The Days of Inventory on Hand (DOH) for Texas Pacific Land Trust has exhibited a declining trend over the years, reflecting more efficient inventory management. As of December 31, 2020, the company had an elevated DOH of 705.44 days, indicating a prolonged time it would take to sell its inventory. However, there has been a significant improvement in inventory turnover, with DOH decreasing to 612.22 days by December 31, 2021, and further dropping to 554.48 days by December 31, 2022.
A sharp reduction is observed by December 31, 2023, where the DOH plummeted to just 21.28 days, signaling a remarkable improvement in inventory management efficiency. This suggests that the company has become more agile in converting its inventory into sales, potentially enhancing liquidity and profitability.
The data for December 31, 2024, is unavailable, denoted by a dash, and therefore, the trend beyond 2023 cannot be ascertained. Overall, the decreasing trend in DOH indicates that Texas Pacific Land Trust has been successful in streamlining its inventory processes and optimizing its working capital utilization.
See also:
Texas Pacific Land Trust Average Inventory Processing Period