Texas Pacific Land Trust (TPL)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Inventory turnover	—	—	—	—	12.73	0.67	0.64	0.70	0.66	0.61	0.57	0.59	0.60	0.54
Receivables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Payables turnover	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Working capital turnover	1.55	1.05	0.69	0.74	0.77	0.83	0.94	1.03	1.12	1.21	1.27	0.93	0.95	0.88

1. Inventory Turnover: Texas Pacific Land Trust's inventory turnover has shown some fluctuations over the years. The company's inventory turnover was relatively low at around 0.5 to 0.7 for most periods up to September 30, 2023, suggesting that it takes a longer time for the company to sell its inventory. However, there was a significant spike in the inventory turnover ratio to 12.73 as of December 31, 2023, indicating a sudden and substantial increase in inventory turnover efficiency. The lack of data for the subsequent periods prevents further analysis of this trend.

2. Receivables Turnover: There is no available data for the receivables turnover ratio for any period within the specified timeline. This ratio is important for evaluating how efficiently the company is collecting its accounts receivable.

3. Payables Turnover: Similar to receivables turnover, there is a lack of data for the payables turnover ratio within the specified timeline. Payables turnover ratio reflects how quickly a company is paying its suppliers, which is crucial for managing liquidity and vendor relationships.

4. Working Capital Turnover: Texas Pacific Land Trust's working capital turnover has shown some variability over the analyzed periods. The ratio ranged from 0.69 to 1.55, indicating fluctuations in how effectively the company is utilizing its working capital to generate revenue. The ratio peaked at 1.55 as of December 31, 2024, suggesting a significant improvement in working capital efficiency compared to previous periods.

In summary, Texas Pacific Land Trust's activity ratios, particularly inventory turnover and working capital turnover, have displayed fluctuations and significant changes over the analyzed periods, highlighting the importance of monitoring these ratios for insights into the company's operational efficiency and financial health.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Days of inventory on hand (DOH)	days	—	—	—	—	28.68	541.09	565.98	521.05	554.48	595.88	645.77	621.04	612.22	675.73
Days of sales outstanding (DSO)	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Number of days of payables	days	—	—	—	—	—	—	—	—	—	—	—	—	—	—

Texas Pacific Land Trust's activity ratios provide insights into the efficiency of its operations.

1. Days of Inventory on Hand (DOH):
- The DOH indicates how long, on average, it takes for the company to sell its inventory.
- From September 2021 to December 2023, the trend shows a gradual decrease in DOH, indicating an improvement in inventory turnover and management efficiency.
- However, there is a significant drop in inventory days from December 2023 to 28.68 days by December 2023, which may indicate a sudden reduction in inventory levels or more efficient inventory management.

2. Days of Sales Outstanding (DSO):
- DSO measures how long it takes for the company to collect payments from its customers.
- The data provided does not have any values for DSO, which suggests that information on accounts receivable turnover is not available for analysis.

3. Number of Days of Payables:
- This ratio signifies the average number of days it takes the company to pay its suppliers.
- The data does not provide any values for the number of days of payables, resulting in the inability to assess the company's payment practices towards suppliers.

In summary, while Texas Pacific Land Trust's DOH showed a positive trend towards efficiency in managing inventory, the lack of data for DSO and payables did not allow for a comprehensive analysis of the company's overall activity ratios related to sales and payments.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Fixed asset turnover	5.76	5.77	7.03	7.15	7.05	7.13	7.72	7.73	7.81	8.12	7.12	6.43	5.66	4.77
Total asset turnover	0.57	0.58	0.51	0.52	0.55	0.57	0.65	0.70	0.76	0.80	0.78	0.60	0.59	0.54

The fixed asset turnover ratio for Texas Pacific Land Trust has shown a generally increasing trend over the analyzed period, indicating that the company is generating more revenue relative to its investment in fixed assets. The ratio increased from 4.77 in September 2021 to a peak of 8.12 in September 2022 before fluctuating slightly downwards. This suggests that the company has been effectively utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has been more variable, showing fluctuations in the company's ability to generate sales from all its assets. The ratio ranged from 0.51 to 0.80 over the analyzed period. Although there were fluctuations, the general trend was a decline in the ratio, indicating a decrease in the efficiency of using all assets to generate revenue.

Overall, Texas Pacific Land Trust's fixed asset turnover ratio indicates efficient utilization of fixed assets to generate revenue, while the total asset turnover ratio suggests some challenges in effectively utilizing all assets to drive sales. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and asset management capabilities.