Texas Pacific Land has a Cash Ratio of 7.49. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Texas Pacific Land's Cash Ratio or its related term are showing as below:
TPL'
s Cash Ratio Range Over the Past 10 Years
Min: 4.07 Med: 9.22 Max: 27.29
Current: 7.49
During the past 13 years, Texas Pacific Land's highest Cash Ratio was 27.29. The lowest was 4.07. And the median was 9.22.
TPL's Cash Ratio is ranked better than 93.52% of 988
companies
in the Oil & Gas industry
Industry Median: 0.43
vs TPL: 7.49
Texas Pacific Land Cash Ratio Historical Data
The historical data trend for Texas Pacific Land's Cash Ratio 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.
Competitive Comparison of Texas Pacific Land's Cash Ratio
For the Oil & Gas E&P subindustry, Texas Pacific Land's Cash Ratio, along with its competitors' market caps and Cash Ratio 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 Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Cash Ratio falls into.
Texas Pacific Land Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Texas Pacific Land's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* 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.
Texas Pacific Land (NYSE:TPL) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Texas Pacific Land Cash Ratio Related Terms
Thank you for viewing the detailed overview of Texas Pacific Land's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Texas Pacific Land Corp is mainly engaged in the 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 of land. The Water Services and Operations segment encompasses the business of providing full-service water offerings to operators, produced-water treatment, infrastructure development, and disposal solutions. The company generates the majority of its revenue from the Land and Resource Management segment.
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