Texas Pacific Land Trust (TPL)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 539,138 | 486,053 | 562,307 | 362,393 | 217,261 |
| Total assets | US$ in thousands | 1,248,020 | 1,156,400 | 877,427 | 764,064 | 571,635 |
| Operating ROA | 43.20% | 42.03% | 64.09% | 47.43% | 38.01% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $539,138K ÷ $1,248,020K
= 43.20%
The operating return on assets (Operating ROA) for Texas Pacific Land Trust has been steadily increasing over the years, showcasing a positive trend in the company's operational efficiency and profitability.
Starting at 38.01% on December 31, 2020, the Operating ROA increased to 47.43% by December 31, 2021, showing a significant improvement. The trend continued with a further jump to 64.09% by December 31, 2022, indicating a strong performance in utilizing its assets for generating operating income.
Although there was a slight dip to 42.03% by December 31, 2023, it rebounded to 43.20% by December 31, 2024. These fluctuations could be due to various factors such as changes in operating expenses, asset management strategies, or market conditions.
Overall, the increasing trend in Operating ROA suggests that Texas Pacific Land Trust is effectively using its assets to generate operating profits, which is a positive signal for investors and stakeholders regarding the company's operational efficiency and potential for growth.