Texas Pacific Land Trust (TPL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 80.88% | 85.39% | 89.18% | 85.58% | 81.44% |
| Operating profit margin | 76.38% | 76.96% | 84.25% | 80.36% | 71.81% |
| Pretax margin | 82.01% | 81.95% | 85.23% | 80.50% | 72.60% |
| Net profit margin | 64.32% | 64.23% | 66.88% | 59.87% | 58.19% |
The profitability ratios of Texas Pacific Land Trust have shown a generally positive trend over the years, indicating strong operational efficiency and financial performance.
- Gross Profit Margin has exhibited an upward trajectory from 81.44% in 2020 to 85.58% in 2021, reaching the highest point at 89.18% in 2022, before slightly declining to 85.39% in 2023 and further to 80.88% in 2024. This indicates that the company has been effectively controlling its cost of goods sold and generating a healthy gross profit relative to its revenue.
- Operating Profit Margin has also displayed a positive trend, increasing from 71.81% in 2020 to 80.36% in 2021, peaking at 84.25% in 2022, and then stabilizing around the mid-70s range in the following years. This suggests that the company has efficiently managed its operating expenses relative to its revenue, leading to strong operational profitability.
- Pretax Margin has shown a steady growth from 72.60% in 2020 to 80.50% in 2021, further rising to 85.23% in 2022, before moderating around the low 80% range in the subsequent years. This indicates that Texas Pacific Land Trust has been successful in controlling its pre-tax expenses and maximizing its profitability before taxes.
- Net Profit Margin has gradually increased from 58.19% in 2020 to 59.87% in 2021, surging to 66.88% in 2022, and then maintaining a level above 64% in the following years. This suggests that the company has effectively managed its overall expenses, including taxes and interest, to generate a healthy net profit relative to its revenue.
Overall, the profitability ratios of Texas Pacific Land Trust reflect a strong financial performance, characterized by efficient cost management, healthy profit generation, and sustainable profitability over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 43.20% | 42.03% | 64.09% | 47.43% | 38.01% |
| Return on assets (ROA) | 36.37% | 35.08% | 50.87% | 35.33% | 30.80% |
| Return on total capital | 47.61% | 46.59% | 72.75% | 55.61% | 44.78% |
| Return on equity (ROE) | 40.09% | 38.88% | 57.75% | 41.43% | 36.28% |
The profitability ratios for Texas Pacific Land Trust demonstrate a consistently strong performance over the years.
1. Operating Return on Assets (Operating ROA) has shown an increasing trend from 38.01% in 2020 to 64.09% in 2022, indicating that the company's operating income generated from its assets has been improving significantly. Although there was a slight dip in 2023, the ratio remains high at 42.03% in that year and 43.20% in 2024.
2. Return on Assets (ROA) has also exhibited a positive trajectory, rising from 30.80% in 2020 to 50.87% in 2022. While there was a drop in 2023 to 35.08%, the ratio rebounded to 36.37% in 2024. This indicates that the company has been effective in generating profits relative to its total assets.
3. Return on Total Capital has been consistently strong, with a noteworthy increase from 44.78% in 2020 to 72.75% in 2022. Despite a decrease in 2023 to 46.59%, the ratio remains robust at 47.61% in 2024. This signifies that the company has been efficient in generating returns from both equity and debt capital.
4. Return on Equity (ROE) has displayed a similar positive trend, climbing from 36.28% in 2020 to 57.75% in 2022. Although there was a decline in 2023 to 38.88%, the ratio improved to 40.09% in 2024. This indicates that the company has been delivering strong returns to its shareholders relative to their equity investments.
Overall, these profitability ratios reflect Texas Pacific Land Trust's ability to generate significant profits relative to its assets, capital, and equity, showcasing strong management of the company's resources and operations.