Texas Pacific Land Trust (TPL)

Financial leverage ratio

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 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020
Total assets US$ in thousands 1,259,170 1,156,400 1,079,320 1,001,320 955,251 877,427 828,974 764,708 856,569 764,064 695,617 633,843 613,802 571,635
Total stockholders’ equity US$ in thousands 1,122,450 1,043,200 964,558 887,550 829,051 772,887 721,170 645,281 727,876 651,711 601,042 547,177 513,935 485,184
Financial leverage ratio 1.12 1.11 1.12 1.13 1.15 1.14 1.15 1.19 1.18 1.17 1.16 1.16 1.19 1.18

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,259,170K ÷ $1,122,450K
= 1.12

The financial leverage ratio of Texas Pacific Land Trust has been relatively stable over the past several quarters, ranging from 1.11 to 1.19. The ratio indicates that the trust has been employing moderate levels of financial leverage, with a slight increasing trend in recent quarters.

A financial leverage ratio above 1 signifies that the trust has more debt in its capital structure than equity. A ratio of 1.12 to 1.19 suggests that Texas Pacific Land Trust's assets are financed by more debt than equity, indicating a higher level of financial risk compared to a company with a lower leverage ratio.

It is essential for stakeholders to monitor the trend in the financial leverage ratio over time to assess the trust's ability to meet its debt obligations and its overall financial stability. However, a single financial ratio like the leverage ratio should be evaluated in conjunction with other financial metrics and qualitative factors to gain a comprehensive understanding of the trust's financial health and risk profile.

See also:

Texas Pacific Land Trust Financial Leverage (Quarterly Data)