Texas Pacific Land Trust (TPL)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 1,122,450 | 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 |
| Return on total capital | 46.07% | 46.59% | 49.39% | 57.63% | 65.49% | 72.75% | 78.20% | 78.28% | 58.35% | 55.61% | 48.54% |
March 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $517,142K ÷ ($—K + $1,122,450K)
= 46.07%
Texas Pacific Land Trust has shown a fluctuating trend in its return on total capital over the past 14 quarters. The return on total capital ranged from a low of 46.07% in March 2024 to a high of 78.28% in June 2022. There was a general decreasing trend from mid-2022 to early 2023, followed by a slight recovery in returns. The company's return on total capital has been above 50% for most quarters, indicating efficient utilization of capital to generate profits. However, the significant fluctuations in the ratios suggest potential variability in the company's performance and capital allocation strategies. Further in-depth analysis of the company's financial and operational performance would be required to assess the underlying factors driving these fluctuations in return on total capital.