Texas Pacific Land Trust (TPL)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 369,835 | 725,169 | 510,834 | 428,242 | 281,046 |
| Short-term investments | US$ in thousands | — | 83,415 | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 46,561 | 44,387 | 39,595 | 50,900 | 21,376 |
| Quick ratio | 7.94 | 18.22 | 12.90 | 8.41 | 13.15 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($369,835K
+ $—K
+ $—K)
÷ $46,561K
= 7.94
The quick ratio of Texas Pacific Land Trust has shown fluctuations over the years, ranging from 7.94 to 18.22. The ratio indicates the company's ability to meet its short-term obligations using its most liquid assets. A higher quick ratio suggests a stronger liquidity position, implying the company can easily cover its current liabilities.
In 2023, the quick ratio significantly increased to 18.22, reflecting a robust ability to settle short-term obligations promptly. However, in 2024, the ratio dropped to 7.94, indicating a potential liquidity strain. Overall, the company has demonstrated varying levels of liquidity strength over the period, with notable improvements and declines in different years.