Texas Pacific Land Trust (TPL)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 837,100 | 725,169 | 654,158 | 609,252 | 590,619 | 510,834 | 446,588 | 389,794 | 507,356 | 428,242 | 372,761 | 329,134 | 310,655 | 281,046 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 11.81 | 16.34 | 13.81 | 13.57 | 9.68 | 12.90 | 10.24 | 6.83 | 7.54 | 8.41 | 12.81 | 15.09 | 9.18 | 13.15 |
March 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($837,100K
+ $—K
+ $—K)
÷ $70,871K
= 11.81
The quick ratio of Texas Pacific Land Trust has fluctuated over the past several quarters, indicating varying short-term liquidity levels. The quick ratio measures the company's ability to meet its short-term obligations using its most liquid assets.
In the most recent quarter, as of March 31, 2024, the quick ratio stood at 11.81, showing a high level of liquidity. This suggests that the company had $11.81 in liquid assets available to cover each dollar of its current liabilities, indicating a strong ability to meet short-term obligations without relying heavily on inventory.
Comparing this value to historical data, we observe that the quick ratio has exhibited significant variability. The quick ratio was notably higher in the previous quarter, December 31, 2023, at 16.34, indicating even stronger liquidity. However, it decreased in the March 31, 2024 quarter, suggesting a potential shift in the composition of current assets.
Over the past year, the quick ratio has ranged from a low of 6.83 in the June 30, 2022 quarter to a high of 16.34 in the December 31, 2023 quarter, indicating fluctuations in liquidity levels. These variations could be influenced by changes in the company's cash reserves, marketable securities, accounts receivable, and other liquid assets.
Overall, while the quick ratio of Texas Pacific Land Trust has shown fluctuations, it has generally remained at levels indicating a strong ability to cover short-term obligations with liquid assets. Further analysis of the components of current assets and liabilities is recommended to gain a deeper understanding of the company's liquidity position.