Stock Analysis on Net
Stock Analysis on Net

Texas Pacific Land Corp. (NYSE:TPL)

This company has been moved to the archive! The financial data has not been updated since November 6, 2024.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Texas Pacific Land Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 42.65% = 38.17% × 1.12
Jun 30, 2024 37.11% = 34.02% × 1.09
Mar 31, 2024 38.62% = 34.43% × 1.12
Dec 31, 2023 38.88% = 35.08% × 1.11
Sep 30, 2023 40.67% = 36.34% × 1.12
Jun 30, 2023 46.93% = 41.60% × 1.13
Mar 31, 2023 52.47% = 45.54% × 1.15
Dec 31, 2022 57.75% = 50.87% × 1.14
Sep 30, 2022 59.03% = 51.35% × 1.15
Jun 30, 2022 58.84% = 49.65% × 1.19
Mar 31, 2022 43.67% = 37.10% × 1.18
Dec 31, 2021 41.43% = 35.33% × 1.17
Sep 30, 2021 39.22% = 33.89% × 1.16
Jun 30, 2021 36.22% = 31.26% × 1.16
Mar 31, 2021 32.83% = 27.48% × 1.19
Dec 31, 2020 36.28% = 30.80% × 1.18
Sep 30, 2020 38.59% = 33.33% × 1.16
Jun 30, 2020 45.28% = 38.68% × 1.17
Mar 31, 2020 53.02% = 43.35% × 1.22
Dec 31, 2019 62.23% = 53.28% × 1.17
Sep 30, 2019 — = — × 1.18
Jun 30, 2019 — = — × 1.21
Mar 31, 2019 — = — × 1.21

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Texas Pacific Land Corp., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 42.65% = 65.34% × 0.58 × 1.12
Jun 30, 2024 37.11% = 66.71% × 0.51 × 1.09
Mar 31, 2024 38.62% = 65.74% × 0.52 × 1.12
Dec 31, 2023 38.88% = 64.23% × 0.55 × 1.11
Sep 30, 2023 40.67% = 63.51% × 0.57 × 1.12
Jun 30, 2023 46.93% = 64.00% × 0.65 × 1.13
Mar 31, 2023 52.47% = 65.28% × 0.70 × 1.15
Dec 31, 2022 57.75% = 66.88% × 0.76 × 1.14
Sep 30, 2022 59.03% = 64.31% × 0.80 × 1.15
Jun 30, 2022 58.84% = 63.87% × 0.78 × 1.19
Mar 31, 2022 43.67% = 61.82% × 0.60 × 1.18
Dec 31, 2021 41.43% = 59.87% × 0.59 × 1.17
Sep 30, 2021 39.22% = 61.90% × 0.55 × 1.16
Jun 30, 2021 36.22% = 59.78% × 0.52 × 1.16
Mar 31, 2021 32.83% = 58.15% × 0.47 × 1.19
Dec 31, 2020 36.28% = 58.19% × 0.53 × 1.18
Sep 30, 2020 38.59% = 59.13% × 0.56 × 1.16
Jun 30, 2020 45.28% = 58.98% × 0.66 × 1.17
Mar 31, 2020 53.02% = 59.66% × 0.73 × 1.22
Dec 31, 2019 62.23% = 64.98% × 0.82 × 1.17
Sep 30, 2019 — = — × — × 1.18
Jun 30, 2019 — = — × — × 1.21
Mar 31, 2019 — = — × — × 1.21

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2024 is the increase in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Texas Pacific Land Corp., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 38.17% = 65.34% × 0.58
Jun 30, 2024 34.02% = 66.71% × 0.51
Mar 31, 2024 34.43% = 65.74% × 0.52
Dec 31, 2023 35.08% = 64.23% × 0.55
Sep 30, 2023 36.34% = 63.51% × 0.57
Jun 30, 2023 41.60% = 64.00% × 0.65
Mar 31, 2023 45.54% = 65.28% × 0.70
Dec 31, 2022 50.87% = 66.88% × 0.76
Sep 30, 2022 51.35% = 64.31% × 0.80
Jun 30, 2022 49.65% = 63.87% × 0.78
Mar 31, 2022 37.10% = 61.82% × 0.60
Dec 31, 2021 35.33% = 59.87% × 0.59
Sep 30, 2021 33.89% = 61.90% × 0.55
Jun 30, 2021 31.26% = 59.78% × 0.52
Mar 31, 2021 27.48% = 58.15% × 0.47
Dec 31, 2020 30.80% = 58.19% × 0.53
Sep 30, 2020 33.33% = 59.13% × 0.56
Jun 30, 2020 38.68% = 58.98% × 0.66
Mar 31, 2020 43.35% = 59.66% × 0.73
Dec 31, 2019 53.28% = 64.98% × 0.82
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2024 is the increase in asset turnover ratio.