Texas Pacific Land Trust (TPL)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.11 | 1.14 | 1.17 | 1.18 |
Texas Pacific Land Trust has consistently maintained a very strong solvency position over the past four years as indicated by its low debt-to-assets, debt-to-capital, and debt-to-equity ratios, all of which have been recorded at 0.00 throughout the period. This means that the company has had no significant debt obligations relative to its total assets, capital, or equity during this time frame.
Additionally, the financial leverage ratio, which measures the company's total assets relative to its equity, has slightly decreased from 1.18 in 2020 to 1.11 in 2023. While the decrease indicates that the company's reliance on debt financing has slightly diminished, the financial leverage ratio remains above 1, indicating some level of financial leverage.
Overall, the solvency ratios suggest that Texas Pacific Land Trust has been operating with a very conservative financial structure and a strong ability to meet its debt obligations. This indicates a robust financial position that supports the company's stability and ability to weather potential financial challenges.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|
| Interest coverage | — | 85.87 | 21.47 | 12.93 |
Texas Pacific Land Trust's interest coverage has demonstrated a positive trend over the past four years, indicating the company's ability to meet its interest obligations from its operating income. The interest coverage ratio increased from 12.93 in 2020 to 21.47 in 2021 and further to 85.87 in 2022, suggesting a significant improvement in the company's ability to cover interest expenses. However, the absence of a specific figure for 2023 limits a precise analysis for that year. Overall, the increasing trend in interest coverage reflects a stronger financial position for Texas Pacific Land Trust in managing its interest obligations.