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.

See also:

Texas Pacific Land Trust Return on Equity (ROE) (Quarterly Data)