Texas Pacific Land Trust (TPL)

Total asset turnover

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
Revenue (ttm) US$ in thousands 705,823 686,696 671,100 659,375 631,595 617,644 650,788 666,449 667,422 661,894 594,476 514,138 450,958 378,084
Total assets US$ in thousands 1,248,020 1,175,570 1,315,790 1,259,170 1,156,400 1,079,320 1,001,320 955,251 877,427 828,974 764,708 856,569 764,064 695,617
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $705,823K ÷ $1,248,020K
= 0.57

The total asset turnover ratio for Texas Pacific Land Trust has exhibited some fluctuations over the period from September 30, 2021, to December 31, 2024. The ratio started at 0.54 in September 2021, indicating that the company generated $0.54 in revenue for every dollar invested in assets during that period.

The ratio gradually increased to 0.80 by June 30, 2022, which suggests that the company became more efficient in utilizing its assets to generate revenue. However, from that point onwards, the total asset turnover ratio fluctuated, reaching a peak of 0.76 by December 31, 2022, before declining and then stabilizing around 0.55 to 0.60 from September 30, 2023, to December 31, 2024.

Overall, the trend in the total asset turnover ratio indicates that Texas Pacific Land Trust has experienced varying levels of efficiency in utilizing its assets to generate revenue over the analyzed period. It is important for the company to continue monitoring and improving its asset turnover ratio to ensure optimal utilization of resources and enhance overall financial performance.

See also:

Texas Pacific Land Trust Total Asset Turnover (Quarterly Data)