Texas Pacific Land Trust (TPL)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 369,835 | 725,169 | 510,834 | 428,242 | 281,046 |
| Short-term investments | US$ in thousands | — | 83,415 | — | — | — |
| Total current liabilities | US$ in thousands | 46,561 | 44,387 | 39,595 | 50,900 | 21,376 |
| Cash ratio | 7.94 | 18.22 | 12.90 | 8.41 | 13.15 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($369,835K
+ $—K)
÷ $46,561K
= 7.94
The cash ratio of Texas Pacific Land Trust has shown fluctuations over the years based on the provided data. As of December 31, 2020, the cash ratio was 13.15, indicating that the company had $13.15 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2021, the cash ratio decreased to 8.41, suggesting that the liquidity position weakened during that period.
Subsequently, there was an improvement in the cash ratio to 12.90 by December 31, 2022, which indicates a better liquidity position compared to the previous year. The cash ratio further increased to 18.22 on December 31, 2023, reflecting a significant improvement in the company's ability to meet its short-term obligations using cash reserves.
However, there was a decline in the cash ratio to 7.94 by December 31, 2024, signaling a potential decrease in the company's liquidity compared to the previous year.
Overall, the trend in the cash ratio of Texas Pacific Land Trust shows fluctuations in liquidity levels, with periods of improvement and decline. It is essential for the company to maintain a strong cash position to effectively manage its short-term obligations and operational needs. Additional analysis and context would be necessary to fully assess the impact of these fluctuations on the company's financial health.