Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Statement of Comprehensive Income
- Analysis of Liquidity Ratios
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Dividend Discount Model (DDM)
- Debt to Equity since 2005
- Total Asset Turnover since 2005
- Price to Book Value (P/BV) since 2005
- Price to Sales (P/S) since 2005
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Profitability Ratios (Summary)
Texas Pacific Land Corp., profitability ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Return on Sales | ||||||
| Operating profit margin | ||||||
| Net profit margin | ||||||
| Return on Investment | ||||||
| Return on equity (ROE) | ||||||
| Return on assets (ROA) | ||||||
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).
- Operating Profit Margin
- The operating profit margin exhibited fluctuations over the analyzed period. It started at a high level of 81.46% in 2019, then declined to 71.81% in 2020. There was a rebound to 80.36% in 2021, followed by an increase to the highest point of 84.25% in 2022. However, in 2023, the margin declined again to 76.96%. Overall, the operating profit margin remained strong but displayed variability, particularly with a notable dip in 2020 and a partial recovery thereafter.
- Net Profit Margin
- The net profit margin showed a downward trend from 64.98% in 2019 to 58.19% in 2020. Subsequently, there was a moderate increase to 59.87% in 2021 and a more significant rise to 66.88% in 2022, representing the peak during the period. In 2023, the net profit margin slightly decreased to 64.23%. These changes indicate some volatility but generally a strong profitability position, with a recovery after the initial drop in 2020.
- Return on Equity (ROE)
- Return on equity declined sharply from 62.23% in 2019 to 36.28% in 2020, indicating a substantial reduction in profitability relative to shareholder equity. There was a gradual improvement to 41.43% in 2021 and a significant increase to 57.75% in 2022. Nevertheless, the ROE declined again to 38.88% in 2023. This suggests fluctuating efficiency in generating returns for shareholders with notable recovery followed by a drop in the most recent year.
- Return on Assets (ROA)
- The return on assets followed a pattern similar to ROE. It decreased from 53.28% in 2019 to 30.80% in 2020, indicating less efficient use of assets to generate profit. Recovery was observed in 2021 with 35.33% and further improvement to 50.87% in 2022. In 2023, ROA declined again to 35.08%. This pattern reflects alternating periods of weakening and strengthening asset utilization performance.
Return on Sales
Return on Investment
Operating Profit Margin
Texas Pacific Land Corp., operating profit margin 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) | ||||||
| Operating income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Operating Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Operating Profit Margin, Industry | ||||||
| Energy | ||||||
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
Operating profit margin = 100 × Operating income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Operating Income
- Operating income demonstrates a fluctuating pattern over the five-year period. It initially decreases significantly from 399,573 thousand US dollars in 2019 to 217,251 thousand US dollars in 2020. Following this decline, there is a strong recovery in 2021 with operating income rising to 362,393 thousand US dollars. This upward trend continues into 2022, reaching a peak of 562,307 thousand US dollars, before experiencing a decline again in 2023 to 486,053 thousand US dollars. Overall, operating income shows volatility but an overall upward trajectory after the initial drop in 2020.
- Revenues
- Revenues exhibit a similar trend to operating income, with an initial decrease from 490,496 thousand US dollars in 2019 to 302,554 thousand US dollars in 2020. After this considerable reduction, revenues progressively increase, reaching 450,958 thousand US dollars in 2021, then markedly rising to 667,422 thousand US dollars in 2022. In 2023, revenues decrease slightly to 631,595 thousand US dollars. The overall trend in revenues aligns with operating income, showing recovery and growth after 2020 but with a minor downturn in the most recent year.
- Operating Profit Margin
- The operating profit margin experiences variation but remains relatively high throughout the period. It decreases from 81.46% in 2019 to 71.81% in 2020, reflecting the impact of reduced operating income and revenues. The margin then improves significantly to 80.36% in 2021, followed by a peak at 84.25% in 2022, indicating enhanced operational efficiency or profitability during these years. However, in 2023, the margin declines to 76.96%, signaling a reduction in profitability relative to operating income and revenues despite remaining strong overall.
- General Observations
- The data reveals a notable impact in 2020 across all measures, likely due to external or market conditions that affected financial performance. After this disruption, both operating income and revenues generally recover and improve until 2022, with operating profit margin also reaching its highest point in that year. The slight declines in operating income, revenue, and margin in 2023 suggest emerging challenges or changes in operational dynamics. Nevertheless, the company maintains robust profitability metrics throughout the period.
Net Profit Margin
Texas Pacific Land Corp., net profit margin 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) | ||||||
| Net income | ||||||
| Revenues | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| Net Profit Margin, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| Net Profit Margin, Industry | ||||||
| Energy | ||||||
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 profit margin = 100 × Net income ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibits fluctuations over the five-year period. It decreased sharply from 318,728 in 2019 to 176,049 in 2020, reflecting a significant decline. Subsequently, net income recovered markedly in 2021, reaching 269,980, and continued to grow strongly to 446,362 in 2022. In 2023, there was a slight decline to 405,645, although the level remained substantially higher than in the early years.
- Revenues
- Revenues followed a similar pattern with an initial drop from 490,496 in 2019 to 302,554 in 2020. After this low point, revenues climbed steadily over the next three years, peaking at 667,422 in 2022 before experiencing a moderate decline to 631,595 in 2023. Overall, revenues demonstrate a recovery and growth trend following the 2020 downturn.
- Net Profit Margin
- The net profit margin shows some variability but remains generally strong throughout the period. It decreased from 64.98% in 2019 to 58.19% in 2020, mirroring the drop in net income and revenues. The margin improved slightly to 59.87% in 2021, then increased more noticeably to 66.88% in 2022. In 2023, the margin slightly declined to 64.23% but remained within a high range overall.
- Summary of Trends
- The financial data reveal a significant impact on performance in 2020, characterized by pronounced declines in net income, revenues, and profit margin. This was followed by a robust recovery in the subsequent years, with 2022 representing a peak in both profitability and revenue generation. Although 2023 shows a modest decrease from 2022’s highs, the company maintains strong profitability levels relative to the earlier years. The resilience and recovery suggest effective management of operations and cost control after the downturn.
Return on Equity (ROE)
Texas Pacific Land Corp., ROE 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) | ||||||
| Net income | ||||||
| Total equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROE, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROE, Industry | ||||||
| Energy | ||||||
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
ROE = 100 × Net income ÷ Total equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income exhibited notable fluctuations over the analyzed period. It experienced a significant decline from 318,728 thousand US dollars in 2019 to 176,049 thousand US dollars in 2020. Subsequently, net income rebounded, rising to 269,980 thousand US dollars in 2021 and further increasing sharply to 446,362 thousand US dollars in 2022. In 2023, a decline was observed again, with net income decreasing to 405,645 thousand US dollars. Overall, the trend reflects volatility with a general upward movement following the 2020 dip.
- Total Equity
- Total equity demonstrated consistent and steady growth throughout the five-year period. Starting from 512,137 thousand US dollars in 2019, it dipped slightly in 2020 to 485,184 thousand US dollars but then increased substantially in subsequent years, reaching 651,711 thousand US dollars in 2021 and 772,887 thousand US dollars in 2022. By the end of 2023, total equity had risen significantly to 1,043,196 thousand US dollars, indicating a strengthened capital base and growing shareholder value.
- Return on Equity (ROE)
- ROE showed a declining trend overall, albeit with some fluctuations. The highest ROE was recorded in 2019 at 62.23%, which then decreased markedly to 36.28% in 2020. A slight recovery occurred in 2021, with ROE increasing to 41.43%, followed by a significant improvement to 57.75% in 2022. However, this increase was not sustained, as ROE declined again to 38.88% in 2023. This pattern suggests varying efficiency in generating profits from equity during the period under review, with 2022 standing out as a year of improved performance efficiency.
Return on Assets (ROA)
Texas Pacific Land Corp., ROA 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) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Chevron Corp. | ||||||
| ConocoPhillips | ||||||
| Exxon Mobil Corp. | ||||||
| Occidental Petroleum Corp. | ||||||
| ROA, Sector | ||||||
| Oil, Gas & Consumable Fuels | ||||||
| ROA, Industry | ||||||
| Energy | ||||||
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
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data reveals several key trends over the five-year period. Net income experienced fluctuations, starting at a high level in 2019, followed by a notable decline in 2020. It then recovered significantly in 2021 and reached its peak in 2022 before decreasing again in 2023, though still maintaining a relatively strong level compared to the initial years.
Total assets showed a consistent upward trajectory throughout the entire period. From 2019 to 2023, total assets nearly doubled, indicating substantial growth in the company's asset base, with particularly marked increases in the last two years.
Return on assets (ROA) followed a pattern influenced by both net income and asset changes. The ROA was highest in 2019 at over 53%, dropped sharply in 2020, then gradually improved in 2021 and 2022. However, in 2023, ROA declined again, reflecting the interplay between rising asset levels and the fluctuating net income. Despite the decrease in the last year, ROA remained above the levels observed in 2020 and 2021.
- Net Income
- Displayed volatility with a peak in 2022 and a decrease in 2023, yet stayed robust overall.
- Total Assets
- Consistently increased year over year, nearly doubling by 2023, indicating significant expansion.
- Return on Assets (ROA)
- Varied in response to income and asset changes, with a high starting point, a trough in 2020, recovery, and a moderate decline in 2023.
Overall, the data indicates strong asset growth alongside volatile profitability, resulting in fluctuating efficiency as measured by ROA. The company appears to be increasing its asset base substantially, but returns on those assets have not consistently improved in line with asset growth every year.