Texas Pacific Land Trust (TPL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,043,200 | 772,887 | 651,711 | 485,184 |
| ROE | 38.88% | 57.75% | 41.43% | 36.28% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $405,645K ÷ $1,043,200K
= 38.88%
The return on equity (ROE) of Texas Pacific Land Trust has shown fluctuations over the past four years. In 2023, the ROE decreased to 38.88% from 57.75% in 2022. Despite the drop, the ROE in 2023 remains relatively high compared to previous years.
The trend indicates that the company has been efficient in generating profits from shareholders' equity, with ROE consistently above 30% for the last four years. The significant increase from 2020 to 2022 shows a period of strong profitability, followed by a slight decline in 2023.
Overall, the ROE performance suggests that Texas Pacific Land Trust has been effectively utilizing its equity to generate returns for shareholders, although the recent decrease in ROE in 2023 may warrant further investigation to understand the factors contributing to this change.