Texas Pacific Land Trust (TPL)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 503,369 | 862,464 | 633,401 | 526,513 | 332,530 |
| Total current liabilities | US$ in thousands | 46,561 | 44,387 | 39,595 | 50,900 | 21,376 |
| Current ratio | 10.81 | 19.43 | 16.00 | 10.34 | 15.56 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $503,369K ÷ $46,561K
= 10.81
The current ratio of Texas Pacific Land Trust has exhibited fluctuations over the past five years. As of December 31, 2020, the current ratio stood at a substantial 15.56, indicating a strong ability to cover short-term liabilities with current assets. Subsequently, by December 31, 2021, the ratio decreased to 10.34, suggesting a potential decrease in liquidity compared to the previous year.
The trend reversed in the following years, with the current ratio showing an improvement to 16.00 by December 31, 2022, and further increasing to 19.43 by December 31, 2023. These figures imply a significant strengthening of the Trust's liquidity position and its ability to meet short-term obligations comfortably.
However, by December 31, 2024, the current ratio dropped to 10.81, signaling a decrease in liquidity compared to the previous year. It is worth noting that while the Trust's liquidity position remains strong overall, investors and stakeholders may want to monitor the fluctuations in the current ratio to assess the Trust's ability to manage short-term financial obligations effectively.