Texas Pacific Land Trust (TPL)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Revenue | US$ in thousands | 631,595 | 667,422 | 450,958 | 302,554 |
| Total assets | US$ in thousands | 1,156,400 | 877,427 | 764,064 | 571,635 |
| Total asset turnover | 0.55 | 0.76 | 0.59 | 0.53 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $631,595K ÷ $1,156,400K
= 0.55
The total asset turnover ratio for Texas Pacific Land Trust has displayed variability over the past four years, ranging from 0.53 in 2020 to 0.76 in 2022. This ratio measures the efficiency at which the company generates revenue from its total assets. A higher total asset turnover ratio indicates that the company is more effective in utilizing its assets to generate sales.
In 2023, the total asset turnover decreased to 0.55, signaling a decline in the company's ability to generate revenue from its total assets compared to the previous year. This decrease could indicate a potential inefficiency in asset utilization or a slowdown in revenue generation relative to the asset base.
Overall, the trend in the total asset turnover ratio for Texas Pacific Land Trust suggests some fluctuation in the company's asset utilization efficiency, which may warrant further investigation to identify the underlying factors driving these changes.