Texas Pacific Land Trust (TPL)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 1,043,200 | 772,887 | 651,711 | 485,184 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $1,043,200K)
= 0.00
The debt-to-capital ratio for Texas Pacific Land Trust has consistently been 0.00 over the past four years (from 2020 to 2023). A debt-to-capital ratio of 0.00 indicates that the trust has had no debt in relation to its capital during this period. This suggests that Texas Pacific Land Trust has been able to finance its operations primarily through equity rather than debt. A low or zero debt-to-capital ratio can indicate financial stability and lower financial risk, as the trust is not heavily reliant on debt to fund its activities. However, it's important to note that a zero debt-to-capital ratio may not always be favorable as a certain level of debt can also be beneficial for optimizing capital structure and potentially increasing returns for shareholders.