Texas Pacific Land Trust (TPL)

Fixed asset turnover

Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Revenue (ttm) US$ in thousands 659,375 631,595 617,644 650,788 666,449 667,422 661,894 594,476 514,138 450,958 378,084
Property, plant and equipment US$ in thousands 92,200 89,587 86,600 84,324 86,192 85,478 81,556 83,444 79,996 79,722 79,204 76,917 78,395 79,267
Fixed asset turnover 7.15 7.05 7.13 7.72 7.73 7.81 8.12 7.12 6.43 5.66 4.77

March 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $659,375K ÷ $92,200K
= 7.15

Texas Pacific Land Trust's fixed asset turnover has shown fluctuation over the past few quarters. The trend indicates that the company has been able to generate revenue efficiently from its fixed assets. An average fixed asset turnover ratio of around 7 suggests that for every dollar invested in fixed assets, the company generates approximately $7 in revenue.

The slight decrease from the previous quarter's ratio of 7.05 to 7.15 indicates a small dip in efficiency in generating revenue from fixed assets. Despite this minor fluctuation, the company continues to maintain a relatively high level of fixed asset turnover, which signifies good asset utilization.

It is important to note that a higher fixed asset turnover ratio typically indicates better efficiency in asset utilization. Texas Pacific Land Trust's consistent ratios above 7 over the past few quarters suggest that the company is effectively utilizing its fixed assets to generate revenue.

Overall, the relatively stable and high fixed asset turnover ratios of Texas Pacific Land Trust indicate efficient management of its fixed assets to generate revenue consistently.

See also:

Texas Pacific Land Trust Net Fixed Asset Turnover (Quarterly Data)