Texas Pacific Land Trust (TPL)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,043,200K
= 0.00
The debt-to-equity ratio of Texas Pacific Land Trust has consistently been calculated as 0.00 for the years ending on December 31, 2020, 2021, 2022, and 2023. A debt-to-equity ratio of 0.00 indicates that the company has no debt relative to its equity during the respective periods. This might suggest that Texas Pacific Land Trust has been operating with minimal or no borrowing to finance its operations, instead relying more on equity financing. This situation can sometimes indicate financial strength, as lower debt levels might imply lower financial risk and debt servicing obligations. However, it is also essential to consider that relying solely on equity financing may limit growth opportunities for the company, as debt can be used to leverage investments and potentially increase returns. Overall, the consistent 0.00 debt-to-equity ratio for Texas Pacific Land Trust highlights a conservative financial approach regarding debt management and a potential strength in its financial position.