Return on Assets (ROA)
since 2005
Calculation
Texas Pacific Land Corp., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 35.08% | = | 100 | × | 405,645) | ÷ | 1,156,398) |
| Dec 31, 2022 | 50.87% | = | 100 | × | 446,362) | ÷ | 877,427) |
| Dec 31, 2021 | 35.33% | = | 100 | × | 269,980) | ÷ | 764,064) |
| Dec 31, 2020 | 30.80% | = | 100 | × | 176,049) | ÷ | 571,635) |
| Dec 31, 2019 | 53.28% | = | 100 | × | 318,728) | ÷ | 598,176) |
| Dec 31, 2018 | 73.57% | = | 100 | × | 209,736) | ÷ | 285,075) |
| Dec 31, 2017 | 59.91% | = | 100 | × | 76,361) | ÷ | 127,460) |
| Dec 31, 2016 | 59.63% | = | 100 | × | 37,240) | ÷ | 62,454) |
| Dec 31, 2015 | 99.21% | = | 100 | × | 50,039) | ÷ | 50,436) |
| Dec 31, 2014 | 105.02% | = | 100 | × | 34,765) | ÷ | 33,102) |
| Dec 31, 2013 | 121.75% | = | 100 | × | 27,219) | ÷ | 22,357) |
| Dec 31, 2012 | 92.74% | = | 100 | × | 19,648) | ÷ | 21,187) |
| Dec 31, 2011 | 75.08% | = | 100 | × | 20,595) | ÷ | 27,432) |
| Dec 31, 2010 | 45.26% | = | 100 | × | 11,309) | ÷ | 24,989) |
| Dec 31, 2009 | 25.81% | = | 100 | × | 6,914) | ÷ | 26,788) |
| Dec 31, 2008 | 35.54% | = | 100 | × | 10,940) | ÷ | 30,785) |
| Dec 31, 2007 | 25.26% | = | 100 | × | 8,250) | ÷ | 32,657) |
| Dec 31, 2006 | 35.64% | = | 100 | × | 11,570) | ÷ | 32,468) |
| Dec 31, 2005 | 26.35% | = | 100 | × | 8,513) | ÷ | 32,305) |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial trajectory from 2005 to 2023 is characterized by an initial period of asset-light efficiency followed by a massive expansion of the balance sheet and a corresponding normalization of return metrics.
- Net Income Trends
- Net income exhibited steady growth from 2005 through 2016, rising from 8.5 million to 37.2 million. A significant acceleration occurred after 2017, with earnings increasing exponentially to reach a peak of 446.4 million in 2022, before slightly moderating to 405.6 million in 2023. This represents a substantial increase in absolute profitability over the nineteen-year period.
- Asset Base Evolution
- Total assets remained relatively stagnant or declined slightly between 2005 and 2013, fluctuating between 21.2 million and 32.6 million. Beginning in 2014, a period of rapid asset accumulation commenced. Total assets grew from 33.1 million in 2014 to 1.156 billion by 2023, indicating a fundamental shift in the company's capital structure and scale of operations.
- Return on Assets (ROA) Analysis
- The ROA experienced extreme volatility and an unconventional peak. Between 2011 and 2014, the ROA surged to unprecedented levels, peaking at 121.75% in 2013. This suggests a phase where income growth vastly outpaced the growth of the asset base. However, as total assets expanded aggressively from 2017 onward, the ROA entered a period of contraction. Despite the continued growth in net income, the massive increase in the denominator (total assets) led to a decline in ROA, which settled at 35.08% by the end of 2023.
- Correlation Between Growth and Efficiency
- An inverse relationship is observable between the scale of the asset base and the ROA percentage after 2014. While the company achieved significantly higher absolute profits in the latter years, the efficiency of asset utilization, as measured by ROA, decreased from its triple-digit peaks. This transition indicates a shift from an extremely lean operational model to a more capital-intensive structure.
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Comparison to Competitors
Texas Pacific Land Corp., ROA, long-term trends, comparison to competitors
| Texas Pacific Land Corp. | Chevron Corp. | ConocoPhillips | ExxonMobil Holdings Corp. | |
|---|---|---|---|---|
| Dec 31, 2023 | 35.08% | 8.17% | 11.42% | 9.57% |
| Dec 31, 2022 | 50.87% | 13.76% | 19.91% | 15.10% |
| Dec 31, 2021 | 35.33% | 6.52% | 8.91% | 6.80% |
| Dec 31, 2020 | 30.80% | -2.31% | -4.31% | -6.74% |
| Dec 31, 2019 | 53.28% | 1.23% | 10.20% | 3.95% |
| Dec 31, 2018 | 73.57% | 5.84% | 8.94% | 6.02% |
| Dec 31, 2017 | 59.91% | 3.62% | -1.17% | 5.65% |
| Dec 31, 2016 | 59.63% | -0.19% | -4.03% | 2.37% |
| Dec 31, 2015 | 99.21% | 1.72% | -4.54% | 4.80% |
| Dec 31, 2014 | 105.02% | 7.23% | 5.89% | 9.30% |
| Dec 31, 2013 | 121.75% | 8.44% | 7.76% | 9.39% |
| Dec 31, 2012 | 92.74% | 11.24% | 7.19% | 13.45% |
| Dec 31, 2011 | 75.08% | 12.84% | 8.12% | 12.40% |
| Dec 31, 2010 | 45.26% | 10.30% | 7.27% | 10.07% |
| Dec 31, 2009 | 25.81% | 6.37% | 3.18% | 8.26% |
| Dec 31, 2008 | 35.54% | 14.85% | -11.90% | 19.83% |
| Dec 31, 2007 | 25.26% | 12.56% | 6.69% | 16.78% |
| Dec 31, 2006 | 35.64% | 12.92% | 9.44% | 18.04% |
| Dec 31, 2005 | 26.35% | 11.20% | 12.64% | 17.34% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Texas Pacific Land Corp., ROA, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Texas Pacific Land Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2023 | 35.08% | 9.31% |
| Dec 31, 2022 | 50.87% | 15.25% |
| Dec 31, 2021 | 35.33% | 6.99% |
| Dec 31, 2020 | 30.80% | -4.83% |
| Dec 31, 2019 | 53.28% | 3.65% |
| Dec 31, 2018 | 73.57% | 6.26% |
| Dec 31, 2017 | 59.91% | 4.15% |
| Dec 31, 2016 | 59.63% | 0.55% |
| Dec 31, 2015 | 99.21% | 2.33% |
| Dec 31, 2014 | 105.02% | 8.01% |
| Dec 31, 2013 | 121.75% | 8.79% |
| Dec 31, 2012 | 92.74% | 11.62% |
| Dec 31, 2011 | 75.08% | 11.59% |
| Dec 31, 2010 | 45.26% | 9.45% |
| Dec 31, 2009 | 25.81% | 6.29% |
| Dec 31, 2008 | 35.54% | 9.80% |
| Dec 31, 2007 | 25.26% | 12.52% |
| Dec 31, 2006 | 35.64% | 13.98% |
| Dec 31, 2005 | 26.35% | 14.45% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Energy)
Texas Pacific Land Corp., ROA, long-term trends, comparison to industry (energy)
| Texas Pacific Land Corp. | Energy | |
|---|---|---|
| Dec 31, 2023 | 35.08% | 9.28% |
| Dec 31, 2022 | 50.87% | 14.84% |
| Dec 31, 2021 | 35.33% | 6.84% |
| Dec 31, 2020 | 30.80% | -6.08% |
| Dec 31, 2019 | 53.28% | 1.97% |
| Dec 31, 2018 | 73.57% | 5.95% |
| Dec 31, 2017 | 59.91% | 3.55% |
| Dec 31, 2016 | 59.63% | 0.27% |
| Dec 31, 2015 | 99.21% | 2.39% |
| Dec 31, 2014 | 105.02% | 8.02% |
| Dec 31, 2013 | 121.75% | 8.90% |
| Dec 31, 2012 | 92.74% | 11.40% |
| Dec 31, 2011 | 75.08% | 11.40% |
| Dec 31, 2010 | 45.26% | 9.36% |
| Dec 31, 2009 | 25.81% | 6.46% |
| Dec 31, 2008 | 35.54% | 10.21% |
| Dec 31, 2007 | 25.26% | 12.80% |
| Dec 31, 2006 | 35.64% | 14.07% |
| Dec 31, 2005 | 26.35% | 14.36% |
Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).