Texas Pacific Land Trust (TPL)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 539,138 | 530,457 | 530,084 | 517,142 | 486,053 | 476,421 | 511,518 | 542,946 | 562,307 | 563,937 | 505,122 | 424,684 | 362,393 | 291,764 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,132,460 | 1,052,130 | 1,206,420 | 1,122,450 | 1,043,200 | 964,558 | 887,550 | 829,051 | 772,887 | 721,170 | 645,281 | 727,876 | 651,711 | 601,042 |
| Return on total capital | 47.61% | 50.42% | 43.94% | 46.07% | 46.59% | 49.39% | 57.63% | 65.49% | 72.75% | 78.20% | 78.28% | 58.35% | 55.61% | 48.54% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $539,138K ÷ ($—K + $1,132,460K)
= 47.61%
The return on total capital of Texas Pacific Land Trust has shown a fluctuating trend over the reporting periods provided. Starting at 48.54% in September 2021, the metric increased steadily to reach a peak of 78.28% by June 30, 2022. However, in the subsequent periods, there was a slight decrease in the return on total capital, falling to 57.63% by June 30, 2023, and further declining to 46.07% by March 31, 2024.
After this decline, there was a slight recovery in the return on total capital, reaching 50.42% by September 30, 2024. The metric then decreased again to 47.61% by December 31, 2024.
Overall, the return on total capital of Texas Pacific Land Trust has displayed variability in performance over the reporting periods, indicating fluctuations in the company's ability to generate profits from its total capital base. It is essential for stakeholders and investors to monitor these trends to assess the company's efficiency in utilizing its capital resources effectively.