Texas Pacific Land Trust (TPL)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 539,138 530,457 530,084 517,142 486,053 476,421 511,518 542,946 562,307 563,937 505,122 424,684 362,393 291,764
Interest expense (ttm) US$ in thousands 0 8,793 8,793 8,793 17,586 12,715 14,635 15,265 6,548 2,626 706 76 0 0
Interest coverage 60.33 60.28 58.81 27.64 37.47 34.95 35.57 85.87 214.75 715.47 5,587.95

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $539,138K ÷ $0K
= —

The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a more comfortable financial position, as the company is generating enough income to cover its interest expenses.

Analyzing the interest coverage of Texas Pacific Land Trust from September 2021 to December 2024 reveals a varying trend. The interest coverage ratio was not available in September 2021 and December 2021. However, in March 2022, the interest coverage ratio spiked to an elevated level of 5,587.95, indicating a significant increase in the ability of the company to cover its interest payments.

Subsequently, the interest coverage ratio declined in the following quarters, demonstrating a decrease in the company's ability to cover interest expenses. By December 2024, the interest coverage ratio dropped to a level of 0, suggesting that the company's operating income may not be sufficient to cover its interest obligations.

Overall, the fluctuating trend in Texas Pacific Land Trust's interest coverage ratio indicates potential variations in the company's financial performance and ability to meet its interest payment obligations in the future. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and risk profile.


See also:

Texas Pacific Land Trust Interest Coverage (Quarterly Data)