Texas Pacific Land Trust (TPL)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 76,564 | 68,468 | 87,710 | 83,853 | 76,849 | 72,215 | 66,818 | 61,656 | 64,111 | 65,027 | 58,632 | |||
| Inventory | US$ in thousands | — | 5,380 | 130,024 | 130,024 | 109,704 | 109,704 | 109,083 | 109,083 | 109,083 | 109,071 | 108,546 | 108,546 | 108,536 | 108,536 |
| Inventory turnover | — | 12.73 | 0.67 | 0.64 | 0.70 | 0.66 | 0.61 | 0.57 | 0.59 | 0.60 | 0.54 |
March 31, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $76,564K ÷ $—K
= —
The inventory turnover ratio for Texas Pacific Land Trust shows a significant improvement in the most recent period, reaching 12.73 as of December 31, 2023, compared to lower levels in the preceding quarters. This indicates that the company was able to sell its inventory more frequently during that period, which is a positive sign of operational efficiency.
Prior to this improvement, the inventory turnover ratio fluctuated at relatively low levels ranging from 0.54 to 0.70. This suggests that the company may have experienced challenges in managing its inventory effectively and efficiently, leading to slower inventory turnover rates.
The notable increase in inventory turnover as of December 31, 2023, may be attributed to various factors such as better inventory management practices, increased demand for the company's products or services, or strategic decisions to optimize inventory levels. A high inventory turnover ratio generally indicates that the company is selling products quickly and efficiently, resulting in lower carrying costs and potentially higher profitability.
Overall, the trend of increasing inventory turnover for Texas Pacific Land Trust indicates a positive development in the management of its inventory and suggests a potential improvement in operational performance and financial health. It will be important to monitor future periods to see if the company can sustain or further improve its inventory turnover ratio.