Texas Pacific Land Trust (TPL)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 10.81 | 12.37 | 22.99 | 13.60 | 19.43 | 16.70 | 16.43 | 11.65 | 16.00 | 13.51 | 9.18 | 9.20 | 10.34 | 15.74 |
| Quick 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 |
| 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 |
The current ratio, quick ratio, and cash ratio of Texas Pacific Land Trust have shown fluctuations over the analyzed periods.
The current ratio, which measures the company's ability to cover its short-term liabilities with its short-term assets, has ranged from as low as 9.18 in June 2022 to as high as 22.99 in June 2024. The ratio peaked at 22.99 in June 2024, indicating a significant increase in the company's ability to cover its current liabilities with its current assets.
The quick ratio, which is a more stringent measure of liquidity as it excludes inventory from current assets, has also shown variability. The ratio ranged from a low of 6.83 in June 2022 to a high of 20.21 in June 2024. The peak quick ratio of 20.21 in June 2024 suggests a strong ability to meet short-term obligations without relying on inventory sales.
Similarly, the cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents, fluctuated over the periods analyzed. The ratio ranged from a low of 6.83 in June 2022 to a high of 20.21 in June 2024, aligning with the trends observed in the quick ratio.
Overall, Texas Pacific Land Trust's liquidity ratios have shown both strengths and weaknesses over the analyzed periods. The company demonstrated varying degrees of liquidity and ability to meet short-term obligations, with notable improvements in liquidity from 2022 to 2024. However, it is important to continue monitoring these ratios to ensure the company maintains a healthy liquidity position.
See also:
Additional liquidity measure
| 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 conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 28.68 | 541.09 | 565.98 | 521.05 | 554.48 | 595.88 | 645.77 | 621.04 | 612.22 | 675.73 |
The cash conversion cycle of Texas Pacific Land Trust has exhibited fluctuations over the periods provided. Starting from 675.73 days on September 30, 2021, the cycle decreased to 554.48 days on December 31, 2022, showing a significant improvement in cash conversion efficiency. Subsequently, the cycle continued to decrease gradually, reaching as low as 28.68 days on December 31, 2023.
The drastic reduction in the cash conversion cycle signifies that the company has been able to more efficiently convert its investments, inventory, and accounts receivable into cash during this period. Additionally, the sharp decline to 0.00 days on March 31, 2024, June 30, 2024, September 30, 2024, and December 31, 2024 implies that the company had reached an optimal level of managing its cash conversion cycle, possibly through improved inventory management, faster collection of receivables, or better utilization of its cash resources.
Overall, the trend suggests that Texas Pacific Land Trust has made significant strides in optimizing its cash conversion cycle, indicating potential enhancements in its working capital management and operational efficiency.