Texas Pacific Land Trust (TPL)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Cash | US$ in thousands | 725,169 | 510,834 | 428,242 | 281,046 |
| Short-term investments | US$ in thousands | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — |
| Total current liabilities | US$ in thousands | 44,387 | 39,595 | 50,900 | 21,376 |
| Quick ratio | 16.34 | 12.90 | 8.41 | 13.15 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($725,169K
+ $—K
+ $—K)
÷ $44,387K
= 16.34
The quick ratio of Texas Pacific Land Trust has exhibited fluctuations over the past four years. In 2023, the quick ratio improved significantly to 16.34 compared to the previous year's 12.90, indicating a more robust liquidity position. This suggests that the company has sufficient liquid assets to cover its current liabilities in the short term.
In 2022, the quick ratio decreased to 12.90 from 8.41 in 2021. Although the ratio remained at a healthy level, the decline may indicate a slight deterioration in the company's liquidity position or a change in its asset composition.
Similarly, in 2021, Texas Pacific Land Trust had a quick ratio of 8.41, showing a decrease from 13.15 in 2020. This decline suggests that the company may have faced challenges in meeting its short-term obligations with its readily available assets during that period.
Overall, the trend of the quick ratio for Texas Pacific Land Trust has been relatively stable, with fluctuations reflecting changes in the company's liquidity management and asset composition over the years. It is important for investors and stakeholders to monitor these ratios to assess the company's ability to meet its short-term financial obligations effectively.