Texas Pacific Land Trust (TPL)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 369,835 | 533,914 | 894,704 | 837,100 | 725,169 | 654,158 | 609,252 | 590,619 | 510,834 | 446,588 | 389,794 | 507,356 | 428,242 | 372,761 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 7.94 | 9.31 | 20.21 | 11.81 | 16.34 | 13.81 | 13.57 | 9.68 | 12.90 | 10.24 | 6.83 | 7.54 | 8.41 | 12.81 |
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 fluctuated over the provided time period, ranging from 6.83 to 20.21. The cash ratio represents the company's ability to cover its current liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to cover short-term obligations.
It is observed that the cash ratio peaked at 20.21 on June 30, 2024, indicating a significant increase in the company's cash and cash equivalents relative to its current liabilities. This could suggest improved liquidity and financial strength during that period.
On the other hand, the lowest cash ratio of 6.83 was recorded on June 30, 2022, reflecting a relatively lower level of cash reserves compared to current liabilities. This may indicate a potential liquidity constraint, requiring the company to access other sources of funds to meet its short-term obligations.
Overall, monitoring the cash ratio over time can provide insights into the company's liquidity position and its ability to manage short-term financial obligations effectively.