Texas Pacific Land Trust (TPL)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 705,823 | 631,595 | 667,422 | 450,958 | 302,554 |
| Property, plant and equipment | US$ in thousands | 122,578 | 89,587 | 85,478 | 79,722 | 79,267 |
| Fixed asset turnover | 5.76 | 7.05 | 7.81 | 5.66 | 3.82 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $705,823K ÷ $122,578K
= 5.76
Fixed asset turnover is a financial ratio that measures a company's efficiency in utilizing its fixed assets to generate revenue. For Texas Pacific Land Trust, the fixed asset turnover has shown an increasing trend from 3.82 in 2020 to 5.66 in 2021, further improving to 7.81 in 2022. However, there was a slight decrease to 7.05 in 2023, followed by a decrease to 5.76 in 2024.
The consistent increase in fixed asset turnover until 2022 indicates that Texas Pacific Land Trust was effectively generating revenue in relation to its fixed asset base. The subsequent slight declines in 2023 and 2024 might suggest a potential decrease in efficiency in utilizing its fixed assets to generate revenue.
Overall, the fluctuation in fixed asset turnover for Texas Pacific Land Trust over the years signifies the importance of monitoring and analyzing this ratio regularly to assess the company's operational efficiency and asset utilization.