Texas Pacific Land Trust (TPL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,132,460 | 1,043,200 | 772,887 | 651,711 | 485,184 |
| ROE | 40.09% | 38.88% | 57.75% | 41.43% | 36.28% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $453,960K ÷ $1,132,460K
= 40.09%
Texas Pacific Land Trust's Return on Equity (ROE) has shown a positive trend over the years as per the provided data. The ROE increased from 36.28% in December 31, 2020, to 41.43% in December 31, 2021, indicating improved efficiency in generating profits from shareholder equity.
Subsequently, there was a significant jump in ROE to 57.75% by December 31, 2022, showcasing a notable increase in profitability relative to shareholders' equity. This surge might suggest effective utilization of resources and effective management of assets.
In the following years, the ROE remained relatively stable at 38.88% by December 31, 2023, and 40.09% by December 31, 2024. While there was a slight decline from the peak in 2022, the ROE continued to be robust, reflecting the company's ability to generate respectable returns for every dollar of equity investment.
Overall, Texas Pacific Land Trust's ROE demonstrates a positive performance trend, with fluctuations that are within reasonable bounds, indicating sustained efficiency in generating profits relative to shareholders' equity. This signifies the company's effective operations and strategic use of resources to create value for its shareholders.