Texas Pacific Land Trust (TPL)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 862,464 | 633,401 | 526,513 | 332,530 |
| Total current liabilities | US$ in thousands | 44,387 | 39,595 | 50,900 | 21,376 |
| Current ratio | 19.43 | 16.00 | 10.34 | 15.56 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $862,464K ÷ $44,387K
= 19.43
The current ratio of Texas Pacific Land Trust has shown a consistent upward trend over the past four years, reaching 19.43 as of December 31, 2023. This indicates a strong ability to cover its short-term liabilities with current assets. The substantial increase from 2022 to 2023 suggests improved liquidity and financial health. The current ratio well above 1 indicates that the Trust has more than enough current assets to pay off its current liabilities, reflecting a robust financial position. It is important to consider the nature of the Trust's current assets and liabilities to have a comprehensive understanding of its liquidity and ability to meet short-term obligations.