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.