Texas Pacific Land Trust (TPL)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 1.10 | 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 |
Texas Pacific Land Trust has consistently maintained a strong solvency position, as indicated by its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 across the period from September 30, 2021, to December 31, 2024. This suggests that the company has no debt relative to its assets, capital, or equity, which is a positive sign of financial stability and low financial risk.
The financial leverage ratio, which measures the proportion of a company's assets that are financed by debt versus equity, has shown a declining trend from 1.16 on September 30, 2021, to 1.10 on December 31, 2024. This indicates that the company has been reducing its reliance on debt financing over this period, further enhancing its solvency and financial strength.
Overall, based on these solvency ratios, Texas Pacific Land Trust appears to have a solid financial foundation with minimal debt obligations and a low level of financial leverage, positioning it well to weather economic uncertainties and capitalize on potential growth opportunities in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | — | — |
Texas Pacific Land Trust's interest coverage has fluctuated significantly over the past few quarters. The interest coverage ratio, which indicates the company's ability to meet interest obligations on its debt, was not available for the September 30, 2021, and December 31, 2021 periods.
In the most recent quarter, December 31, 2024, the interest coverage ratio was not provided either. However, looking at the available data, we can see a downward trend in the interest coverage ratio from March 31, 2022, where it was 5,587.95, to December 31, 2024.
The interest coverage ratio decreased from 5,587.95 in March 31, 2022, to 85.87 in December 31, 2022, and further declined to 60.28 in June 30, 2024. This decreasing trend indicates that the company's ability to cover interest expenses with its earnings has weakened over time.
Although the interest coverage ratio improved slightly in the most recent quarter, December 31, 2024, without the specific ratio value, it is challenging to assess the current financial health of Texas Pacific Land Trust in terms of its ability to fulfill its interest payment obligations.
Further monitoring of the interest coverage ratio in future quarters is necessary to understand whether the recent improvement is sustainable or if the downward trend in interest coverage will continue, potentially signaling financial challenges for the company.