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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a decline from 5.55 in 2019 to 3.82 in 2020, followed by a recovery and upward trend reaching 7.81 in 2022. In 2023, this ratio slightly decreased to 7.05, indicating a high but somewhat reduced efficiency in using fixed assets to generate sales compared to the previous year.
- Net Fixed Asset Turnover Including Operating Lease
- The ratio including operating lease, right-of-use assets shows a similar pattern to the net fixed asset turnover, decreasing from 5.37 in 2019 to 3.7 in 2020. It then increased steadily to 7.58 in 2022, before a minor decline to 6.91 in 2023. This parallel trend suggests consistent treatment of leased assets in turnover efficiency analysis with slight variations.
- Total Asset Turnover
- Total asset turnover declined from 0.82 in 2019 to 0.53 in 2020, indicating a decrease in overall asset efficiency. The ratio improved to 0.59 in 2021 and further to 0.76 in 2022, showing a partial recovery. However, the ratio dropped again in 2023 to 0.55, reflecting fluctuating asset utilization efficiency over the period with no consistent upward trend.
- Equity Turnover
- The equity turnover ratio mirrored the behavior of total asset turnover, falling from 0.96 in 2019 to 0.62 in 2020, then gradually increasing to 0.69 in 2021 and 0.86 in 2022. Similar to total asset turnover, equity turnover decreased to 0.61 in 2023. These movements indicate variability in the firm’s ability to generate sales from shareholder equity with a notable dip in 2020 and partial recoveries thereafter.
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 | 0.60 | — | |
| ConocoPhillips | 0.80 | 1.21 | 0.71 | 0.47 | — | |
| Exxon Mobil Corp. | 1.56 | 1.95 | 1.28 | 0.78 | — | |
| Occidental Petroleum Corp. | 0.48 | 0.63 | 0.43 | 0.27 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.24 | 1.59 | 1.03 | 0.63 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 1.29 | 1.63 | 1.07 | 0.67 | — | |
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.
- Revenues
- Revenues exhibited a significant decline from 490,496 thousand US dollars in 2019 to 302,554 thousand in 2020. This was followed by a recovery trend, with revenues rising to 450,958 thousand in 2021 and further increasing sharply to 667,422 thousand in 2022. However, in 2023, revenues experienced a slight decrease to 631,595 thousand. Overall, the revenue trend shows a period of volatility, with a notable dip in 2020 and a strong rebound in the subsequent years.
- Property, plant and equipment, net
- The net value of property, plant, and equipment demonstrated minor fluctuations over the period. It decreased from 88,323 thousand in 2019 to 79,267 thousand in 2020, remained relatively stable in 2021 at 79,722 thousand, and then gradually increased to 85,478 thousand in 2022 and to 89,587 thousand in 2023. This indicates a cautious but steady growth in fixed asset investments after a slight downturn in 2020.
- Net fixed asset turnover
- The net fixed asset turnover ratio showed notable variability. It dropped from 5.55 in 2019 to 3.82 in 2020, reflecting lower efficiency in generating revenues from fixed assets during that year. The ratio recovered sharply to 5.66 in 2021, peaked at 7.81 in 2022, and slightly declined to 7.05 in 2023. This pattern suggests improved utilization of fixed assets in revenue generation after 2020, with peak efficiency observed in 2022.
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 | 0.59 | — | |
| ConocoPhillips | 0.79 | 1.20 | 0.70 | 0.46 | — | |
| Exxon Mobil Corp. | 1.51 | 1.89 | 1.24 | 0.76 | — | |
| Occidental Petroleum Corp. | 0.47 | 0.62 | 0.43 | 0.27 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.20 | 1.55 | 1.01 | 0.62 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 1.25 | 1.58 | 1.04 | 0.65 | — | |
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.
- Revenues
- Revenues displayed notable fluctuations over the analyzed period. Starting from approximately 490.5 million in 2019, there was a significant decline to around 302.6 million in 2020. Following this drop, revenues increased substantially in 2021 and 2022, reaching a peak of approximately 667.4 million in 2022. However, in 2023, revenues experienced a slight decrease to roughly 631.6 million. Overall, despite the volatility, the general trajectory from 2019 to 2023 shows recovery and growth after the 2020 dip.
- Property, Plant and Equipment, Net
- The net value of property, plant, and equipment, including operating lease right-of-use assets, remained relatively stable throughout the period. Values started at around 91.4 million in 2019, experienced a decline to approximately 81.7 million in 2020, and remained near that level through 2021. A modest recovery occurred in 2022 and 2023, reaching again close to the initial figure, about 91.4 million. This indicates limited capital expenditure changes or divestments, maintaining asset base consistency.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio demonstrated noticeable variability across the years. It began at a high level of 5.37 in 2019, dropped significantly to 3.7 in 2020, probably reflecting the revenue decline and stable asset base. Subsequently, the ratio recovered sharply to 5.53 in 2021, peaked at 7.58 in 2022, and then decreased slightly to 6.91 in 2023. This trend indicates improved efficiency in generating revenues from fixed assets after 2020, with a peak in operational productivity in 2022 before a mild decline.
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 | 0.39 | — | |
| ConocoPhillips | 0.59 | 0.84 | 0.51 | 0.30 | — | |
| Exxon Mobil Corp. | 0.89 | 1.08 | 0.82 | 0.54 | — | |
| Occidental Petroleum Corp. | 0.38 | 0.50 | 0.35 | 0.22 | — | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.76 | 0.94 | 0.68 | 0.43 | — | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.76 | 0.93 | 0.67 | 0.44 | — | |
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.
- Revenues
- The revenues exhibited a fluctuating pattern over the analyzed periods. Beginning at 490,496 thousand US dollars in 2019, revenues declined significantly to 302,554 thousand US dollars in 2020. Following this decline, the revenues showed a strong recovery in 2021 with an increase to 450,958 thousand US dollars and further rose substantially to reach 667,422 thousand US dollars in 2022. However, in 2023, revenues experienced a slight decrease to 631,595 thousand US dollars, indicating a minor pullback after the prior year's peak.
- Total Assets
- Total assets demonstrated a consistent upward trend throughout the period. Starting at 598,176 thousand US dollars in 2019, there was a small decline to 571,635 thousand US dollars in 2020. Subsequently, total assets increased steadily each year, reaching 764,064 thousand in 2021, 877,427 thousand in 2022, and culminating at 1,156,398 thousand US dollars in 2023. This growth pattern suggests ongoing investment or asset accumulation activities.
- Total Asset Turnover
- The total asset turnover ratio experienced notable volatility. The ratio began at 0.82 in 2019, indicating relatively efficient use of assets to generate revenue. However, it decreased sharply to 0.53 in 2020, reflecting less efficient asset utilization. The ratio modestly improved to 0.59 in 2021 and further increased to 0.76 in 2022, correlating with the revenue growth in those years. Nevertheless, in 2023, the ratio declined again to 0.55, suggesting a reduction in operational efficiency relative to the asset base despite the increase in total assets.
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 | 0.72 | — | |
| ConocoPhillips | 1.14 | 1.64 | 1.01 | 0.63 | — | |
| Exxon Mobil Corp. | 1.63 | 2.04 | 1.64 | 1.14 | — | |
| Occidental Petroleum Corp. | 0.93 | 1.22 | 1.28 | 0.96 | — | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.38 | 1.73 | 1.35 | 0.92 | — | |
| Equity Turnover, Industry | ||||||
| Energy | 1.39 | 1.73 | 1.36 | 0.95 | — | |
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 financial data exhibits notable fluctuations and trends across the five-year period ending in 2023. Revenues experienced a significant decline from 2019 to 2020, dropping from approximately $490.5 million to $302.6 million. Following this downturn, revenues showed a recovery in 2021 and continued to rise sharply in 2022, reaching a peak of about $667.4 million before slightly decreasing to $631.6 million in 2023.
Total equity demonstrated consistent growth throughout the period. Starting at about $512.1 million in 2019, equity slightly decreased to $485.2 million in 2020 but then embarked on a steady upward trend, increasing to $651.7 million in 2021, $772.9 million in 2022, and culminating in a substantial rise to approximately $1.04 billion by the end of 2023.
The equity turnover ratio, which measures the efficiency in generating revenues from equity, showed considerable variability. It declined significantly from 0.96 in 2019 to 0.62 in 2020, reflecting reduced revenue generation relative to equity during the pandemic year. The ratio improved moderately to 0.69 in 2021 and further to 0.86 in 2022, indicating a recovery in operational efficiency. However, in 2023, the ratio again decreased to 0.61 despite the high equity base, suggesting that increases in equity outpaced revenue growth, resulting in less efficient utilization of equity capital during that year.
Overall, the data reflect a company that faced challenges in 2020 but managed to recover revenues significantly by 2022, although revenue growth plateaued or slightly declined in 2023. Meanwhile, equity capital grew consistently, especially after 2020, increasing the company's financial strength. However, the reduced equity turnover ratio in 2023 points to a potential area of concern regarding how effectively the company is using its equity to generate revenues in the most recent period.