Texas Pacific Land Trust (TPL)
Working capital 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 current assets | US$ in thousands | 503,369 | 708,969 | 1,017,680 | 963,828 | 862,464 | 790,858 | 737,530 | 711,006 | 633,401 | 589,187 | 523,936 | 618,840 | 526,513 | 458,108 |
| Total current liabilities | US$ in thousands | 46,561 | 57,331 | 44,268 | 70,871 | 44,387 | 47,370 | 44,884 | 61,037 | 39,595 | 43,599 | 57,073 | 67,279 | 50,900 | 29,102 |
| 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 |
December 31, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (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 shown fluctuations over the periods presented. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.
From September 30, 2021, to June 30, 2022, the working capital turnover increased steadily from 0.88 to 1.27, indicating an improvement in the efficiency of working capital management in generating sales revenue. However, from June 30, 2022, to December 31, 2024, there were fluctuations in the ratio, showing a decrease to 0.69 on June 30, 2024, followed by an increase to 1.55 on December 31, 2024.
The working capital turnover ratio exceeding 1 is generally considered positive as it indicates that the company is generating more revenue for each unit of working capital employed. The overall trend of the ratio suggests that Texas Pacific Land Trust has been able to effectively manage its working capital to support its sales activities, with some fluctuations observed in the efficiency of working capital utilization during the periods analyzed.
See also:
Texas Pacific Land Trust Working Capital Turnover (Quarterly Data)