Texas Pacific Land Trust (TPL)
Profitability ratios
Return on sales
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 80.88% | 62.62% | 62.66% | 63.11% | 62.77% | 85.80% | 87.12% | 88.47% | 89.18% | 89.91% | 89.63% | 87.53% | 85.58% | 86.57% |
| Operating profit margin | 76.38% | 77.25% | 78.99% | 78.43% | 76.96% | 77.14% | 78.60% | 81.47% | 84.25% | 85.20% | 84.97% | 82.60% | 80.36% | 77.17% |
| Pretax margin | 82.01% | 83.44% | 85.31% | 83.90% | 81.95% | 81.05% | 81.38% | 83.25% | 85.23% | 81.46% | 80.56% | 77.46% | 74.49% | 77.44% |
| Net profit margin | 64.32% | 65.34% | 66.71% | 65.74% | 64.23% | 63.51% | 64.00% | 65.28% | 66.88% | 64.31% | 63.87% | 61.82% | 59.87% | 62.35% |
The profitability ratios of Texas Pacific Land Trust show fluctuations over the period analyzed. The Gross Profit Margin, which represents the percentage of revenue retained as gross profit, exhibited a decreasing trend from 89.91% in September 2022 to a low of 62.62% in September 2024.
The Operating Profit Margin, indicating the efficiency of operations in generating profits, peaked at 84.97% in June 2022 but gradually declined to 76.38% by December 2024, showing a general downward trend over the period.
The Pretax Margin, reflecting the proportion of pre-tax profits to total revenue, increased from 77.44% in September 2021 to 85.23% in December 2022, before fluctuating up and down to settle at 82.01% by December 2024.
The Net Profit Margin, which measures the final profitability after accounting for all expenses, followed a similar pattern, reaching its highest point of 66.88% in December 2022 and then steadying around the mid-60s percentage range in the subsequent quarters, ending at 64.32% by December 2024.
Overall, the analysis of profitability ratios suggests that while the company initially saw growth and efficiency improvements, there was a subsequent decline in profitability towards the end of the period under review. It would be important for stakeholders to investigate the reasons behind these shifts and consider strategies to sustain or improve profitability in the future.
Return on investment
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 43.20% | 45.12% | 40.29% | 41.07% | 42.03% | 44.14% | 51.08% | 56.84% | 64.09% | 68.03% | 66.05% | 49.58% | 47.43% | 41.94% |
| Return on assets (ROA) | 36.37% | 38.17% | 34.02% | 34.43% | 35.08% | 36.34% | 41.60% | 45.54% | 50.87% | 51.35% | 49.65% | 37.10% | 35.33% | 33.89% |
| Return on total capital | 47.61% | 50.42% | 43.94% | 46.07% | 46.59% | 49.39% | 57.63% | 65.49% | 72.75% | 78.20% | 78.28% | 58.35% | 55.61% | 48.54% |
| Return on equity (ROE) | 40.09% | 42.65% | 37.11% | 38.62% | 38.88% | 40.67% | 46.93% | 52.47% | 57.75% | 59.03% | 58.84% | 43.67% | 41.43% | 39.22% |
Texas Pacific Land Trust's profitability ratios show a generally positive trend over the reported periods. The Operating return on assets (Operating ROA) increased from 41.94% in September 2021 to 45.12% in September 2024. This indicates the company's ability to generate profit from its operations relative to its assets has improved over time.
Similarly, the Return on assets (ROA) also showed an increasing trend, rising from 33.89% in September 2021 to 38.17% in September 2024. This suggests that the company's overall profitability in relation to its total assets has been on the rise.
The Return on total capital exhibited a fluctuating pattern but generally improved from 48.54% in September 2021 to 47.61% in December 2024. This ratio reflects the company's ability to generate returns for both equity and debt holders.
The Return on equity (ROE) displayed a similar positive trajectory, increasing from 39.22% in September 2021 to 40.09% in December 2024. This metric indicates how well the company is utilizing its equity to generate profits for its shareholders.
Overall, Texas Pacific Land Trust's profitability ratios demonstrate a favorable performance, with improvements in generating returns from both operations and total capital, as well as enhancing shareholder value through increasing returns on equity.
See also:
Texas Pacific Land Trust Profitability Ratios (Quarterly Data)