Texas Pacific Land Trust (TPL)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,122,450 | 1,043,200 | 964,558 | 887,550 | 829,051 | 772,887 | 721,170 | 645,281 | 727,876 | 651,711 | 601,042 | 547,177 | 513,935 | 485,184 |
| ROE | 38.62% | 38.88% | 40.67% | 46.93% | 52.47% | 57.75% | 59.03% | 58.84% | 43.67% | 41.43% | 39.22% |
March 31, 2024 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $433,494K ÷ $1,122,450K
= 38.62%
The return on equity (ROE) of Texas Pacific Land Trust has displayed fluctuating trends over the past few quarters. The ROE has declined from 59.03% in September 2022 to 38.62% in March 2024, with some volatility in between.
The ROE peaked at 59.03% in September 2022, followed by a gradual decline to 38.62% in March 2024. This downward trend indicates a diminishing ability of the company to generate profits from its shareholders' equity.
The highest ROE of 59.03% in September 2022 suggests that the company was able to generate $0.59 in net income for every dollar of shareholders' equity during that period. However, the subsequent decrease in ROE indicates a potential decline in the company's profitability relative to its equity base.
The declining trend in ROE may raise concerns about the company's efficiency in utilizing shareholders' equity to generate returns. Investors and stakeholders may need to closely monitor the company's financial performance and assess the factors contributing to the fluctuations in ROE to make informed decisions about their investment in Texas Pacific Land Trust.