Texas Pacific Land Trust (TPL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 486,053 | 562,307 | 362,393 | 217,261 |
| Interest expense | US$ in thousands | — | 6,548 | 16,881 | 16,806 |
| Interest coverage | — | 85.87 | 21.47 | 12.93 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $486,053K ÷ $—K
= —
Interest coverage is a ratio that measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates a company is more capable of meeting its interest obligations.
For Texas Pacific Land Trust, the interest coverage ratio has shown a positive trend over the years. In 2020, the interest coverage ratio was 12.93, indicating the company's ability to cover its interest expenses almost 13 times over with its EBIT. This ratio improved significantly to 21.47 in 2021 and further increased to 85.87 in 2022. Unfortunately, the interest coverage ratio for 2023 is not available in the provided data.
Overall, the increasing trend in the interest coverage ratio for Texas Pacific Land Trust suggests that the company's ability to meet its interest obligations has been strengthening over the years, demonstrating a positive financial performance in terms of managing its debt and interest expenses.