Texas Pacific Land Trust (TPL)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 553,204 | 517,561 | 500,582 | 529,620 | 554,807 | 568,855 | 539,147 | 478,925 | 398,263 | 335,901 | 292,793 |
| Revenue (ttm) | US$ in thousands | 659,375 | 631,595 | 617,644 | 650,788 | 666,449 | 667,422 | 661,894 | 594,476 | 514,138 | 450,958 | 378,084 |
| Pretax margin | 83.90% | 81.95% | 81.05% | 81.38% | 83.25% | 85.23% | 81.46% | 80.56% | 77.46% | 74.49% | 77.44% |
March 31, 2024 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $553,204K ÷ $659,375K
= 83.90%
The pretax margin of Texas Pacific Land Trust has shown a generally positive trend over the past several quarters. The company's pretax margin has consistently remained above 70%, indicating strong profitability before taxes. There was an increase in pretax margin from the fourth quarter of 2021 to the first quarter of 2022, followed by fluctuating but relatively stable levels in the subsequent quarters of 2022 and 2023.
In the most recent quarter ending March 31, 2024, the pretax margin reached its highest level at 83.90%, showcasing efficient cost management and revenue generation. This strong performance suggests that the company is effectively controlling its operating expenses and generating healthy profits before taxes.
Overall, the upward trend in pretax margin reflects Texas Pacific Land Trust's ability to maintain robust profitability levels, which could be viewed positively by investors and stakeholders. It indicates a solid financial performance and operational efficiency within the organization.