showing the working

← Texas Pacific Land

The business behind the dividend

MeasureTPLMedianFormula
Return on equity33.0%10.6%Net income ÷ shareholders’ equity
Return on capital employedOperating income ÷ (equity + total debt)
Owner earnings$507.96m$120.90mNet income + depreciation & amortisation − capital expenditure
Free cash flow$509.96m$155.08mOperating cash flow − capital expenditure
Operating margin74.2%14.3%Operating income ÷ revenue
Net margin60.3%10.1%Net income ÷ revenue
Debt to equityTotal debt ÷ shareholders’ equity
Interest coverOperating income ÷ interest expense
Current ratioCurrent assets ÷ current liabilities
Long-term debt to working capitalLong-term debt ÷ (current assets − current liabilities)
Cash conversionOperating cash flow ÷ net income
Accruals-4.0%-3.1%(Net income − operating cash flow) ÷ total assets

Not computed here: Cash conversion, Current ratio, Debt to equity, Long-term debt to working capital, Interest cover, Return on capital employed — why a blank is not a zero.

Ten years of it

The same measures, for every year the filings support. One year is a fact; a row is a business.

Measure20252024202320222021202020192018Median
Return on equity33.0%40.1%38.9%57.8%41.4%36.3%62.2%85.7%41.4%
Operating margin74.2%76.4%77.0%84.3%80.4%71.8%81.5%86.9%80.4%
Net margin60.3%64.3%64.2%66.9%59.9%58.2%65.0%69.9%64.3%

How it compares in banks & insurers

Among the 377 banks & insurers companies here measured on GAAP earnings, Texas Pacific Land pays out less than 188 of them. The median for that group is 30.6%, against this company’s 30.6%.

Closest on GAAP earnings

Same sector and same denominator, so the figures are comparable. All 377 in banks & insurers →