Texas Pacific Land Trust (TPL)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 963,828 | 862,464 | 790,858 | 737,530 | 711,006 | 633,401 | 589,187 | 523,936 | 618,840 | 526,513 | 458,108 | 398,230 | 375,847 | 332,530 |
| 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 |
| Current ratio | 13.60 | 19.43 | 16.70 | 16.43 | 11.65 | 16.00 | 13.51 | 9.18 | 9.20 | 10.34 | 15.74 | 18.26 | 11.10 | 15.56 |
March 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $963,828K ÷ $70,871K
= 13.60
The current ratio of Texas Pacific Land Trust has exhibited fluctuations over the past several quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets, with a higher ratio indicating a stronger liquidity position.
As of March 31, 2024, the current ratio stands at 13.60, representing a significant decrease from the previous quarter. This notable decline could indicate potential challenges in meeting short-term obligations with current assets.
Looking at the trend over the past few quarters, the current ratio has varied considerably, with peaks around 19.43 in December 2023 and lows around 9.18 in June 2022. These fluctuations suggest changing liquidity levels within the company, possibly influenced by factors such as asset composition, debt levels, or operational performance.
It is essential for investors and stakeholders to closely monitor the current ratio of Texas Pacific Land Trust to assess its liquidity position and ability to meet short-term financial obligations. Further analysis, including comparison with industry benchmarks and historical trends, can provide a more comprehensive understanding of the company's liquidity management.