Texas Pacific Land Trust (TPL)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 517,561 | 568,855 | 363,017 | 219,662 |
| Revenue | US$ in thousands | 631,595 | 667,422 | 450,958 | 302,554 |
| Pretax margin | 81.95% | 85.23% | 80.50% | 72.60% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $517,561K ÷ $631,595K
= 81.95%
The pretax margin of Texas Pacific Land Trust has shown a generally positive trend over the past four years, with values ranging from 72.60% in December 2020 to 85.23% in December 2022. However, there was a slight decrease in the pretax margin to 81.95% in December 2023. This indicates that the company has been effectively managing its expenses relative to its revenue, resulting in a high level of profitability before taxes. Overall, the pretax margin performance of Texas Pacific Land Trust demonstrates consistent financial efficiency and effective cost control measures over the years.