Texas Pacific Land Trust (TPL)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,248,020 | 1,175,570 | 1,315,790 | 1,259,170 | 1,156,400 | 1,079,320 | 1,001,320 | 955,251 | 877,427 | 828,974 | 764,708 | 856,569 | 764,064 | 695,617 |
| Total stockholders’ equity | US$ in thousands | 1,132,460 | 1,052,130 | 1,206,420 | 1,122,450 | 1,043,200 | 964,558 | 887,550 | 829,051 | 772,887 | 721,170 | 645,281 | 727,876 | 651,711 | 601,042 |
| Financial leverage ratio | 1.10 | 1.12 | 1.09 | 1.12 | 1.11 | 1.12 | 1.13 | 1.15 | 1.14 | 1.15 | 1.19 | 1.18 | 1.17 | 1.16 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,248,020K ÷ $1,132,460K
= 1.10
The financial leverage ratio of Texas Pacific Land Trust has shown a generally decreasing trend from September 2021 to December 2024. The ratio, which measures the extent to which the company relies on debt to finance its operations, started at 1.16 in September 2021 and reached its lowest point of 1.09 in June 2024 before slightly increasing to 1.10 by December 2024.
A decreasing financial leverage ratio indicates that the company has been relying less on debt and more on equity to fund its assets and operations over the period under consideration. This trend suggests potentially lower financial risk for the company, as lower leverage implies greater financial stability and flexibility.
It is important for investors and stakeholders to monitor the financial leverage ratio of Texas Pacific Land Trust to assess its debt management and overall financial health, as excessive debt levels can increase the company's risk of financial distress, especially during economic downturns.
See also:
Texas Pacific Land Trust Financial Leverage (Quarterly Data)