Texas Pacific Land Trust (TPL)
Solvency ratios
| 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 | ||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Texas Pacific Land Trust indicate a consistently low level of leverage and debt utilization over the past several quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been consistently at 0.00, suggesting that the company has no debt relative to its assets, capital, or equity. This indicates a strong financial position with low reliance on external borrowing.
However, the financial leverage ratio has shown some variability over the quarters, ranging from 1.11 to 1.19. This ratio indicates the proportion of total assets that are financed by debt compared to equity. The increasing trend in the leverage ratio suggests a slight uptick in the company's use of debt to finance its operations over time, but the overall level remains relatively moderate.
Overall, the solvency ratios demonstrate that Texas Pacific Land Trust has maintained a conservative financial structure with little to no debt burden. While there has been a slight increase in leverage, the company's solvency position appears solid and stable.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 58.81 | 27.64 | 37.47 | 34.95 | 35.57 | 85.87 | 214.75 | 715.47 | 5,587.95 | — | — |
The interest coverage ratio for Texas Pacific Land Trust has shown significant fluctuations over the periods analyzed. The ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
In Mar 2024, the interest coverage ratio stood at 58.81, indicating that the company's EBIT was 58.81 times higher than its interest expenses for the period. This represents a strong ability to meet interest obligations.
The ratio decreased from Mar 2024 to Dec 2023, showing a decline in the company's ability to cover its interest payments. However, it remained above 1, indicating that the company still generated enough earnings to cover its interest expenses.
The interest coverage ratio saw a significant increase in Sep 2022 and Dec 2022, where it reached very high levels of 214.75 and 715.47, respectively. This suggests a substantial improvement in the company's ability to service its debt.
In contrast, the interest coverage ratio in Mar 2022 and Dec 2021 was exceptionally high at 5,587.95. Such a high ratio may indicate a one-time event or anomaly in the financial statements that significantly boosted EBIT for those periods.
Overall, the interest coverage ratio for Texas Pacific Land Trust has shown volatility, but it generally indicates a strong ability to meet interest obligations, with some periods demonstrating exceptionally high coverage levels. Nevertheless, it is essential to assess the underlying reasons for such fluctuations to fully understand the company's financial health.