Texas Pacific Land Trust (TPL)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 453,960 | 405,645 | 446,362 | 269,980 | 176,049 |
| Total assets | US$ in thousands | 1,248,020 | 1,156,400 | 877,427 | 764,064 | 571,635 |
| ROA | 36.37% | 35.08% | 50.87% | 35.33% | 30.80% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $453,960K ÷ $1,248,020K
= 36.37%
The return on assets (ROA) of Texas Pacific Land Trust has shown a positive trend over the years. The ROA increased from 30.80% in December 31, 2020, to 35.33% in December 31, 2021, indicating an improvement in the company's ability to generate profit from its assets. This trend continued with a significant jump to 50.87% in December 31, 2022, suggesting a more efficient utilization of assets to generate earnings.
However, in December 31, 2023, the ROA decreased slightly to 35.08%, but it remained relatively high compared to the baseline in 2020. The most recent data point in December 31, 2024, shows a further increase to 36.37%, indicating a continued positive performance in generating returns relative to the assets employed by the company.
Overall, the increasing trend in the ROA over the years reflects Texas Pacific Land Trust's ability to effectively generate profits from its assets, signaling operational efficiency and potential financial strength.