Texas Pacific Land Trust (TPL)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.10 | 1.11 | 1.14 | 1.17 | 1.18 |
Based on the provided solvency ratios for Texas Pacific Land Trust, it is evident that the company has consistently maintained a strong financial position with low levels of debt and risk.
1. Debt-to-assets ratio: The data shows that the debt-to-assets ratio has been consistently 0.00 from 2020 to 2024, indicating that the company has had no debt relative to its total assets during this period. This suggests that the company relies primarily on equity to fund its operations.
2. Debt-to-capital ratio: Similarly, the debt-to-capital ratio has been 0.00 for all the years, implying that Texas Pacific Land Trust has not utilized debt to finance its capital structure. This ratio reaffirms the company's conservative approach towards leveraging its operations.
3. Debt-to-equity ratio: The debt-to-equity ratio has also remained at 0.00 for each year, indicating that the company has no financial leverage from debt in relation to its equity. This signifies that the company's operations are not significantly reliant on debt financing.
4. Financial leverage ratio: The financial leverage ratio has shown a declining trend from 1.18 in 2020 to 1.10 in 2024. This indicates that the company has become less reliant on debt financing over the years, as the ratio suggests a reduction in the proportion of debt used in funding its assets.
In conclusion, the solvency ratios of Texas Pacific Land Trust consistently demonstrate a strong financial position with minimal debt and low financial risk. The company's prudent approach to managing debt and maintaining a healthy balance sheet showcases its robust financial health and ability to sustain its operations.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 85.87 | 21.47 | 12.93 |
Based on the data provided for Texas Pacific Land Trust's interest coverage ratio, we observe a consistent trend of improvement over the years.
As of December 31, 2020, the interest coverage ratio stood at 12.93, indicating that the company was generating sufficient earnings before interest and taxes to cover its interest expenses nearly 13 times.
By December 31, 2021, the interest coverage ratio had increased to 21.47, demonstrating a stronger ability to meet interest obligations from operating profits.
The ratio saw a significant rise to 85.87 by December 31, 2022, suggesting a substantial enhancement in the company's ability to cover interest payments with its operating income.
Incomplete data is provided for December 31, 2023, and December 31, 2024. However, based on the trend observed in the previous years, it can be inferred that Texas Pacific Land Trust's interest coverage ratio may continue to exhibit a positive trajectory.
Overall, the improving trend in the interest coverage ratio reflects the company's strengthening financial position and its ability to comfortably meet its interest payment obligations.