Texas Pacific Land Trust (TPL)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 92,278 | 72,215 | 65,027 | 56,157 |
| Inventory | US$ in thousands | 5,380 | 109,704 | 109,071 | 108,536 |
| Inventory turnover | 17.15 | 0.66 | 0.60 | 0.52 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $92,278K ÷ $5,380K
= 17.15
The inventory turnover ratio for Texas Pacific Land Trust has shown a significant improvement over the past four years. In particular, the ratio increased from just 0.52 in 2020 to 0.60 in 2021, and then experienced a substantial jump to 0.66 in 2022. The most notable increase occurred in 2023, where the inventory turnover ratio surged to 17.15.
This significant increase in inventory turnover from 2022 to 2023 indicates that Texas Pacific Land Trust is managing its inventory more efficiently. A higher inventory turnover ratio suggests that the company is selling its inventory more frequently within a given period, which can lead to reduced carrying costs and improved liquidity.
Overall, the upward trend in inventory turnover reflects positively on the company's inventory management practices and operational efficiency within the given periods.