Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Texas Pacific Land Corp., long-term (investment) activity ratios
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).
The investment activity ratios exhibit a pattern of volatility over the five-year period, characterized by a notable decline in efficiency during 2020 and a subsequent recovery that peaked in 2022 before softening in 2023.
- Net Fixed Asset Turnover
- The net fixed asset turnover demonstrates significant fluctuation, starting at 5.55 in 2019 and dropping to 3.82 in 2020. A strong recovery followed, with the ratio climbing to a peak of 7.81 in 2022, indicating a period of high efficiency in generating revenue from fixed assets. By 2023, this ratio moderated slightly to 7.05. The inclusion of operating lease right-of-use assets yields nearly identical results, suggesting that leased assets have a negligible impact on the overall fixed asset efficiency profile.
- Total Asset Turnover
- Total asset utilization shows a less stable trajectory compared to fixed asset turnover. The ratio fell from 0.82 in 2019 to 0.53 in 2020, followed by a gradual increase to 0.76 in 2022. However, 2023 saw a sharp contraction to 0.55, suggesting a decrease in the overall efficiency of the company's total asset base in generating sales.
- Equity Turnover
- Equity turnover closely mirrors the trends observed in total asset turnover. From a high of 0.96 in 2019, the ratio declined to 0.62 in 2020, recovered to 0.86 in 2022, and ultimately fell to 0.61 by the end of 2023. This indicates that the efficiency of shareholder equity in producing revenue has diminished since 2019.
A divergence is observed between the fixed asset turnover and the total asset turnover in 2023. While fixed asset efficiency remained relatively high compared to 2019-2021 levels, the total asset and equity turnovers declined significantly. This divergence suggests that the reduction in overall asset efficiency may be driven by factors other than fixed assets, such as an increase in current assets or other non-fixed long-term investments that did not yield a proportional increase in revenue.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Fixed Asset Turnover
Texas Pacific Land Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 631,595) | 667,422) | 450,958) | 302,554) | 490,496) | |
| Property, plant and equipment, net | 89,587) | 85,478) | 79,722) | 79,267) | 88,323) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 7.05 | 7.81 | 5.66 | 3.82 | 5.55 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.28 | 1.64 | 1.06 | — | — | |
| ConocoPhillips | 0.80 | 1.21 | 0.71 | — | — | |
| ExxonMobil Holdings Corp. | 1.56 | 1.95 | 1.28 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.34 | 1.73 | 1.12 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 1.39 | 1.77 | 1.15 | — | — | |
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).
1 2023 Calculation
Net fixed asset turnover = Revenues ÷ Property, plant and equipment, net
= 631,595 ÷ 89,587 = 7.05
2 Click competitor name to see calculations.
The analysis of long-term activity indicates a volatile yet generally improving trend in asset utilization efficiency between 2019 and 2023. The relationship between revenue generation and net fixed assets suggests a business model characterized by relatively stable capital investment requirements despite significant fluctuations in top-line performance.
- Net Fixed Asset Turnover Trend
- A significant fluctuation in the net fixed asset turnover ratio is observed over the five-year period. The ratio declined sharply from 5.55 in 2019 to a low of 3.82 in 2020, reflecting a period of decreased asset efficiency. This was followed by a strong recovery in 2021 (5.66) and a peak in 2022, where the ratio reached 7.81. By the end of 2023, the ratio moderated slightly to 7.05, remaining substantially higher than the levels recorded at the start of the period.
- Revenue Volatility and Fixed Asset Stability
- Revenues exhibited considerable volatility, dropping from 490,496 thousand US dollars in 2019 to 302,554 thousand US dollars in 2020, before climbing to a peak of 667,422 thousand US dollars in 2022. In contrast, net property, plant, and equipment remained remarkably stable, fluctuating within a narrow range between 79,267 thousand and 89,587 thousand US dollars. This divergence indicates that revenue growth was not driven by proportional increases in fixed asset investment.
- Asset Efficiency Insights
- The increase in the turnover ratio during 2021 and 2022 demonstrates an enhanced ability to generate revenue from the existing fixed asset base. The peak efficiency observed in 2022 suggests an optimal alignment between capital employment and revenue output. The slight contraction in the ratio in 2023 is attributable to a simultaneous decrease in revenues and a marginal increase in net fixed assets, suggesting a minor cooling of asset productivity relative to the previous year.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Texas Pacific Land Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 631,595) | 667,422) | 450,958) | 302,554) | 490,496) | |
| Property, plant and equipment, net | 89,587) | 85,478) | 79,722) | 79,267) | 88,323) | |
| Operating lease right-of-use assets | 1,861) | 2,525) | 1,826) | 2,473) | 3,098) | |
| Property, plant and equipment, net (including operating lease, right-of-use asset) | 91,448) | 88,003) | 81,548) | 81,740) | 91,421) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 6.91 | 7.58 | 5.53 | 3.70 | 5.37 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | 1.24 | 1.59 | 1.03 | — | — | |
| ConocoPhillips | 0.79 | 1.20 | 0.70 | — | — | |
| ExxonMobil Holdings Corp. | 1.51 | 1.89 | 1.24 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.30 | 1.68 | 1.09 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 1.35 | 1.72 | 1.12 | — | — | |
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).
1 2023 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property, plant and equipment, net (including operating lease, right-of-use asset)
= 631,595 ÷ 91,448 = 6.91
2 Click competitor name to see calculations.
The analysis of the net fixed asset turnover from 2019 to 2023 reveals a period of significant volatility followed by an overall increase in asset utilization efficiency. The company maintains a relatively stable base of net property, plant, and equipment, while revenues have experienced substantial fluctuations, directly impacting the turnover ratio.
- Revenue and Asset Base Correlation
- A strong correlation is observed between revenue fluctuations and the net fixed asset turnover ratio. Because the net property, plant, and equipment remained relatively constant—ranging from a low of 81.5 million in 2021 to a high of 91.4 million in 2019 and 2023—the changes in the turnover ratio are almost exclusively driven by top-line performance rather than capital expenditure shifts.
- Trend Analysis of Asset Efficiency
- The net fixed asset turnover ratio experienced a notable decline in 2020, dropping to 3.70 as revenues decreased to 302.6 million. This represents the lowest point of operational efficiency within the analyzed period. Subsequently, a recovery phase occurred, with the ratio climbing to 5.53 in 2021 and reaching a peak of 7.58 in 2022, coinciding with the highest revenue recorded at 667.4 million.
- Recent Performance and Stability
- In 2023, the ratio moderated slightly to 6.91, reflecting a marginal decrease in revenues to 631.6 million. Despite this slight dip, the 2023 efficiency level remains significantly higher than the 2019 baseline of 5.37, suggesting that the company is generating more revenue per unit of fixed asset investment than it was five years prior.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Total Asset Turnover
Texas Pacific Land Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 631,595) | 667,422) | 450,958) | 302,554) | 490,496) | |
| Total assets | 1,156,398) | 877,427) | 764,064) | 571,635) | 598,176) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.55 | 0.76 | 0.59 | 0.53 | 0.82 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 0.75 | 0.91 | 0.65 | — | — | |
| ConocoPhillips | 0.59 | 0.84 | 0.51 | — | — | |
| ExxonMobil Holdings Corp. | 0.89 | 1.08 | 0.82 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.80 | 0.99 | 0.71 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.79 | 0.97 | 0.71 | — | — | |
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).
1 2023 Calculation
Total asset turnover = Revenues ÷ Total assets
= 631,595 ÷ 1,156,398 = 0.55
2 Click competitor name to see calculations.
The analysis of asset utilization between 2019 and 2023 reveals a volatile trend in efficiency, characterized by an inconsistent relationship between revenue generation and the growth of the asset base.
- Revenue Trends
- Revenues experienced significant fluctuations over the five-year period. After a sharp decline from 490,496 thousand USD in 2019 to 302,554 thousand USD in 2020, a strong recovery occurred, peaking at 667,422 thousand USD in 2022. A slight contraction was observed in 2023, with revenues ending at 631,595 thousand USD.
- Asset Base Expansion
- Total assets demonstrated a consistent long-term upward trajectory following a marginal decrease in 2020. The asset base expanded from 598,176 thousand USD in 2019 to 1,156,398 thousand USD by the end of 2023, indicating a substantial increase in the scale of the company's investments.
- Total Asset Turnover Analysis
- The total asset turnover ratio showed marked instability, beginning at 0.82 in 2019 and dropping to 0.53 in 2020. While the ratio improved steadily to 0.76 by 2022—reflecting a period where revenue growth outpaced asset accumulation—it fell sharply to 0.55 in 2023. This most recent decline is attributable to a significant surge in total assets that was not matched by a corresponding increase in revenue.
The observed patterns indicate a decline in the efficiency of asset deployment over the long term. The divergence seen in the final year suggests that the substantial expansion of the balance sheet has yet to yield proportional gains in revenue generation.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Equity Turnover
Texas Pacific Land Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenues | 631,595) | 667,422) | 450,958) | 302,554) | 490,496) | |
| Total equity | 1,043,196) | 772,887) | 651,711) | 485,184) | 512,137) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.61 | 0.86 | 0.69 | 0.62 | 0.96 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.22 | 1.48 | 1.12 | — | — | |
| ConocoPhillips | 1.14 | 1.64 | 1.01 | — | — | |
| ExxonMobil Holdings Corp. | 1.63 | 2.04 | 1.64 | — | — | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.42 | 1.77 | 1.35 | — | — | |
| Equity Turnover, Industry | ||||||
| Energy | 1.43 | 1.76 | 1.36 | — | — | |
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).
1 2023 Calculation
Equity turnover = Revenues ÷ Total equity
= 631,595 ÷ 1,043,196 = 0.61
2 Click competitor name to see calculations.
The analysis of investment activity ratios reveals a period of volatility in equity turnover, characterized by a notable divergence between the growth of the equity base and the pace of revenue generation over the five-year period.
- Revenue Trends
- Revenues exhibited significant fluctuation, with a sharp decline in 2020 to 302,554 thousand US dollars. A recovery phase followed, peaking in 2022 at 667,422 thousand US dollars, before experiencing a slight contraction to 631,595 thousand US dollars by the end of 2023.
- Equity Accumulation
- Total equity has maintained a consistent upward trajectory from 2020 onward. The equity base expanded from 485,184 thousand US dollars in 2020 to 1,043,196 thousand US dollars in 2023, indicating a substantial increase in the company's net assets.
- Equity Turnover Dynamics
- The equity turnover ratio demonstrates instability, starting at 0.96 in 2019 and ending at 0.61 in 2023. Although the ratio improved to 0.86 in 2022, driven by strong revenue growth, the sharp decline to 0.61 in 2023 suggests that the rapid expansion of total equity has significantly outpaced revenue growth.
The observed pattern indicates a decline in the efficiency of equity utilization. The substantial growth in the capital base, coupled with stagnating or fluctuating revenues, has resulted in a lower turnover ratio, implying that a larger amount of equity is required to generate the same level of revenue compared to the 2019 baseline.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?