Texas Pacific Land Trust (TPL)
Cash ratio
| 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 837,100 | 725,169 | 654,158 | 609,252 | 590,619 | 510,834 | 446,588 | 389,794 | 507,356 | 428,242 | 372,761 | 329,134 | 310,655 | 281,046 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 70,871 | 44,387 | 47,370 | 44,884 | 61,037 | 39,595 | 43,599 | 57,073 | 67,279 | 50,900 | 29,102 | 21,810 | 33,848 | 21,376 |
| Cash ratio | 11.81 | 16.34 | 13.81 | 13.57 | 9.68 | 12.90 | 10.24 | 6.83 | 7.54 | 8.41 | 12.81 | 15.09 | 9.18 | 13.15 |
March 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($837,100K
+ $—K)
÷ $70,871K
= 11.81
The cash ratio of Texas Pacific Land Trust has shown some fluctuations over the past few quarters. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
The cash ratio for Texas Pacific Land Trust was 11.81 as of March 31, 2024, indicating that the company had $11.81 in cash and cash equivalents for every $1 of its current liabilities. This ratio has decreased from the previous quarter, where it was 16.34 on December 31, 2023.
Looking at the trend over the past year, the cash ratio has shown variability, with peaks and troughs. The company had its highest cash ratio of 16.34 on December 31, 2023, and its lowest cash ratio of 6.83 on June 30, 2022. Generally, having a higher cash ratio is seen as favorable as it indicates a greater ability to meet short-term obligations.
It's important to note that while a high cash ratio reflects good liquidity, excessively high levels could also mean that the company is not utilizing its cash efficiently. Conversely, a low cash ratio may signal potential liquidity issues. Therefore, it is essential to analyze the cash ratio in conjunction with other financial ratios and information to get a comprehensive view of the company's financial health.