Texas Pacific Land Trust (TPL)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 517,142 | 486,053 | 476,421 | 511,518 | 542,946 | 562,307 | 563,937 | 505,122 | 424,684 | 362,393 | 291,764 | |||
| Total assets | US$ in thousands | 1,259,170 | 1,156,400 | 1,079,320 | 1,001,320 | 955,251 | 877,427 | 828,974 | 764,708 | 856,569 | 764,064 | 695,617 | 633,843 | 613,802 | 571,635 |
| Operating ROA | 41.07% | 42.03% | 44.14% | 51.08% | 56.84% | 64.09% | 68.03% | 66.05% | 49.58% | 47.43% | 41.94% |
March 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $517,142K ÷ $1,259,170K
= 41.07%
Texas Pacific Land Trust's operating return on assets (operating ROA) has exhibited fluctuations over the past few quarters. The operating ROA has ranged from a low of 41.07% in March 2024 to a high of 68.03% in September 2022. Generally, a higher operating ROA indicates that the company is generating more operating income from its assets.
The trend in operating ROA shows a peak in the second half of 2022, followed by a decreasing trend in 2023 before a slight increase in the most recent quarter. This suggests that the company may have experienced stronger operational performance and efficiency in 2022 compared to 2023.
However, even with the fluctuations, the operating ROA has generally remained at relatively high levels, indicating the company's ability to effectively utilize its assets to generate operating income. Investors may view a high and stable operating ROA positively as it represents the company's ability to generate profits from its core operations.
It is essential for stakeholders to monitor the operating ROA trend over time to assess the company's operational efficiency and profitability. Additionally, comparing the operating ROA to industry benchmarks can provide further insights into the company's competitive position and performance relative to its peers.