Texas Pacific Land Trust (TPL)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Net income | US$ in thousands | 405,645 | 446,362 | 269,980 | 176,049 |
| Total assets | US$ in thousands | 1,156,400 | 877,427 | 764,064 | 571,635 |
| ROA | 35.08% | 50.87% | 35.33% | 30.80% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $405,645K ÷ $1,156,400K
= 35.08%
The return on assets (ROA) for Texas Pacific Land Trust has shown fluctuating trends over the past four years. In 2023, the ROA was 35.08%, which is a decrease from the previous year's 50.87%. Despite the decrease, the ROA still remains relatively high, indicating that the company is generating a significant amount of profit relative to its total assets.
Comparing the ROA to 2021 and 2020, where the figures were 35.33% and 30.80% respectively, there has been some variability in the company's profitability efficiency. The ROA peaked in 2022 at 50.87%, suggesting a strong performance in utilizing its assets to generate earnings.
Overall, the ROA demonstrates Texas Pacific Land Trust's ability to effectively generate profits from its assets, although there have been fluctuations in performance over the past four years. Further analysis of the company's financial statements and business operations would be necessary to understand the underlying factors driving these changes in ROA.