Texas Pacific Land Trust (TPL)
Return on assets (ROA)
| 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 433,494 | 405,645 | 392,266 | 416,529 | 435,030 | 446,362 | 425,676 | 379,676 | 317,828 | 269,980 | 235,726 | |||
| Total assets | US$ in thousands | 1,259,170 | 1,156,400 | 1,079,320 | 1,001,320 | 955,251 | 877,427 | 828,974 | 764,708 | 856,569 | 764,064 | 695,617 | 633,843 | 613,802 | 571,635 |
| ROA | 34.43% | 35.08% | 36.34% | 41.60% | 45.54% | 50.87% | 51.35% | 49.65% | 37.10% | 35.33% | 33.89% |
March 31, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $433,494K ÷ $1,259,170K
= 34.43%
The Return on Assets (ROA) of Texas Pacific Land Trust has exhibited fluctuations over the periods analyzed. The ROA ranged from a low of 33.89% in the third quarter of 2021 to a high of 51.35% in the third quarter of 2022. During the most recent quarter, ending March 31, 2024, the ROA stood at 34.43%.
The downward trend in ROA from the peak in the third quarter of 2022 indicates a potential decrease in the firm's ability to generate earnings relative to its assets. It is important to note that despite the fluctuations, the ROA values remain relatively high, suggesting that Texas Pacific Land Trust has been efficient in converting its assets into profits, with double-digit ROA percentages observed consistently.
Further analysis and comparison with industry averages or historical performance may provide additional insights into the company's operational efficiency and profitability relative to its asset base.