Texas Pacific Land Trust (TPL)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,248,020 | 1,156,400 | 877,427 | 764,064 | 571,635 |
| Total stockholders’ equity | US$ in thousands | 1,132,460 | 1,043,200 | 772,887 | 651,711 | 485,184 |
| Financial leverage ratio | 1.10 | 1.11 | 1.14 | 1.17 | 1.18 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,248,020K ÷ $1,132,460K
= 1.10
The financial leverage ratio for Texas Pacific Land Trust has shown a gradual decline over the years, decreasing from 1.18 in December 2020 to 1.10 by December 2024. This decline indicates an improvement in the company's ability to meet its financial obligations using debt financing. A lower financial leverage ratio suggests that the company relies less on debt and has stronger financial stability. Texas Pacific Land Trust's decreasing leverage ratio may signal prudent financial management and a reduced risk of financial distress.