Texas Pacific Land Trust (TPL)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 578,821 | 517,561 | 568,855 | 363,017 | 219,662 |
| Revenue | US$ in thousands | 705,823 | 631,595 | 667,422 | 450,958 | 302,554 |
| Pretax margin | 82.01% | 81.95% | 85.23% | 80.50% | 72.60% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $578,821K ÷ $705,823K
= 82.01%
The pretax margin of Texas Pacific Land Trust has shown a positive trend over the years, indicating the company's ability to generate profits before considering taxes. Starting at 72.60% in December 31, 2020, the pretax margin increased to 80.50% by December 31, 2021, demonstrating improved operational efficiency. Subsequently, the margin continued to strengthen, reaching 85.23% by December 31, 2022. However, there was a slight decrease to 81.95% by December 31, 2023, possibly due to changes in the business environment or specific operational factors. Nonetheless, the pretax margin remained relatively stable at 82.01% by December 31, 2024, signifying the company's consistent ability to generate profits before tax expenses. Overall, the upward trajectory of the pretax margin reflects Texas Pacific Land Trust's effective cost management and revenue generation strategies over the years.