Texas Pacific Land Trust (TPL)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 725,169 | 510,834 | 428,242 | 281,046 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 44,387 | 39,595 | 50,900 | 21,376 |
| Cash ratio | 16.34 | 12.90 | 8.41 | 13.15 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($725,169K
+ $—K)
÷ $44,387K
= 16.34
The cash ratio of Texas Pacific Land Trust has shown a fluctuating trend over the past four years. The ratio stood at 16.34 in 2023, indicating that the company had $16.34 in cash and cash equivalents for every $1 of current liabilities. This represents a significant improvement compared to the previous year's ratio of 12.90, suggesting that the company had a stronger liquidity position in 2023.
In 2021, the cash ratio was 8.41, reflecting a lower level of liquidity compared to the other years in the dataset. However, the ratio increased to 13.15 in 2020, indicating an improvement in liquidity from the prior year.
Overall, the increasing trend in the cash ratio from 2020 to 2023 suggests that Texas Pacific Land Trust has been more effective in managing its liquidity and has had a higher proportion of cash and cash equivalents relative to its current liabilities in recent years. This could potentially signify better financial stability and the ability to cover short-term obligations more comfortably.