Texas Pacific Land Trust (TPL)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 705,823 | 631,595 | 667,422 | 450,958 | 302,554 |
| Total current assets | US$ in thousands | 503,369 | 862,464 | 633,401 | 526,513 | 332,530 |
| Total current liabilities | US$ in thousands | 46,561 | 44,387 | 39,595 | 50,900 | 21,376 |
| Working capital turnover | 1.55 | 0.77 | 1.12 | 0.95 | 0.97 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $705,823K ÷ ($503,369K – $46,561K)
= 1.55
The working capital turnover ratio for Texas Pacific Land Trust has fluctuated over the past five years. In December 2020 and December 2021, the ratios were 0.97 and 0.95 respectively, indicating that the Trust was generating revenue less than once per year from its working capital. However, in December 2022, the ratio improved to 1.12, suggesting an increase in efficiency in utilizing its working capital to generate revenue.
Subsequently, in December 2023, the ratio decreased to 0.77, which may signal a decrease in the Trust's ability to generate revenue from its working capital. Nonetheless, in December 2024, there was a significant improvement in the ratio to 1.55, indicating a substantial increase in revenue generated from the Trust's working capital.
Overall, the working capital turnover ratio for Texas Pacific Land Trust has shown variability over the years, with notable improvements in some periods and declines in others. Surveillance of this ratio can offer insights into the efficiency of the Trust's working capital management and revenue generation processes.