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Texas Pacific Land (Texas Pacific Land) ROA % : 40.47% (As of Dec. 2023)


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What is Texas Pacific Land ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Texas Pacific Land's annualized Net Income for the quarter that ended in Dec. 2023 was $452.4 Mil. Texas Pacific Land's average Total Assets over the quarter that ended in Dec. 2023 was $1,117.9 Mil. Therefore, Texas Pacific Land's annualized ROA % for the quarter that ended in Dec. 2023 was 40.47%.

The historical rank and industry rank for Texas Pacific Land's ROA % or its related term are showing as below:

TPL' s ROA % Range Over the Past 10 Years
Min: 30.1   Med: 73.54   Max: 125.37
Current: 40.01

During the past 13 years, Texas Pacific Land's highest ROA % was 125.37%. The lowest was 30.10%. And the median was 73.54%.

TPL's ROA % is ranked better than
97.7% of 1089 companies
in the Oil & Gas industry
Industry Median: 2.6 vs TPL: 40.01

Texas Pacific Land ROA % Historical Data

The historical data trend for Texas Pacific Land's ROA % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Texas Pacific Land ROA % Chart

Texas Pacific Land Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 72.17 30.10 40.43 54.38 39.89

Texas Pacific Land Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
ROA % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 46.76 37.79 41.05 40.59 40.47

Competitive Comparison of Texas Pacific Land's ROA %

For the Oil & Gas E&P subindustry, Texas Pacific Land's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Texas Pacific Land's ROA % Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Texas Pacific Land's ROA % distribution charts can be found below:

* The bar in red indicates where Texas Pacific Land's ROA % falls into.



Texas Pacific Land ROA % Calculation

Texas Pacific Land's annualized ROA % for the fiscal year that ended in Dec. 2023 is calculated as:

ROA %=Net Income (A: Dec. 2023 )/( (Total Assets (A: Dec. 2022 )+Total Assets (A: Dec. 2023 ))/ count )
=405.645/( (877.427+1156.398)/ 2 )
=405.645/1016.9125
=39.89 %

Texas Pacific Land's annualized ROA % for the quarter that ended in Dec. 2023 is calculated as:

ROA %=Net Income (Q: Dec. 2023 )/( (Total Assets (Q: Sep. 2023 )+Total Assets (Q: Dec. 2023 ))/ count )
=452.44/( (1079.318+1156.398)/ 2 )
=452.44/1117.858
=40.47 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Dec. 2023) net income data. ROA % is displayed in the 30-year financial page.


Texas Pacific Land  (NYSE:TPL) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Dec. 2023 )
=Net Income/Total Assets
=452.44/1117.858
=(Net Income / Revenue)*(Revenue / Total Assets)
=(452.44 / 666.628)*(666.628 / 1117.858)
=Net Margin %*Asset Turnover
=67.87 %*0.5963
=40.47 %

Note: The Net Income data used here is four times the quarterly (Dec. 2023) net income data. The Revenue data used here is four times the quarterly (Dec. 2023) revenue data.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Texas Pacific Land ROA % Related Terms

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Texas Pacific Land (Texas Pacific Land) Business Description

Traded in Other Exchanges
Address
1700 Pacific Avenue, Suite 2900, Dallas, TX, USA, 75201
Texas Pacific Land Corp is mainly engaged in sales and leases of land owned, retaining oil and gas royalties, and the overall management of the land owned. It operates its business in two segments including Land and Resource Management and Water Service and Operations. The Land and Resource Management segment focuses on managing its oil and gas royalty interest and surface acres located in 19 different counties. The Water Service and Operations segment includes Water Sourcing, Produced Water Gathering / Treatment / Recycling, Infrastructure Development, Produced Water Disposal, Water Tracking / Analytics / Well Testing.
Executives
Murray Stahl director C/O HORIZON KINETICS LLC, 470 PARK AVE S 8TH FL S, NEW YORK NY 10016
Horizon Kinetics Asset Management Llc 10 percent owner 470 PARK AVENUE SOUTH, 4TH FLOOR SOUTH, NEW YORK NY 10016
Rhys J Best director MRC GLOBAL INC., 2 HOUSTON CENTER, 909 FANNIN, SUITE 3100, HOUSTON TX 77010
Donald G Cook director 100 FIRST STAMFORD PLACE, STAMFORD CT 06902
Micheal W. Dobbs officer: Senior VP, Secretory + GC 1700 PACIFIC AVENUE, SUITE 2900, DALLAS TX 75201
Karl F Kurz director DEVON ENERGY CORP., 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
Stephanie Buffington officer: Chief Accounting Officer
Dana F. Mcginnis director 112 E PECAN STREET, SUITE 1425, SAN ANTONIO TX 78025
Barbara J Duganier director 6 CARLTON PARK COURT, HOUSTON TX 77024-7316
Norris John R Iii director 3811 TURTLE CREEK BLVD #400, C/O CALOWAY NORRIS & BURDETTE, DALLAS TX 75219
Donna E Epps director 11465 JOHNS CREEK PARKWAY, SUITE400, JOHNS CREEK GA 30097
Eric L Oliver director 303 W WALL, SUITE 1700, MIDLAND TX 79701
Chris Steddum officer: Chief Financial Officer 1700 PACIFIC AVENUE, SUITE 2900, DALLAS TX 75201
Tyler Glover director, officer: President & CEO 1700 PACIFIC AVENUE, SUITE 2770, C/O TEXAS PACIFIC LAND TRUST, DALLAS TX 75201
David E. Barry director C/O SIDRA REAL ESTATE, INC., TWO RIVERWAY, SUITE 1010, HOUSTON TX 77056