Texas Pacific LandTPL -1.88%90 Current Ratio is 4.23 as of Mar. 2026, which is 61% below its 10-year median of 10.82. GuruFocus rates TPL with a GF Score™ of 90/100 and a GF Value™ of $369.98 (Fairly Valued). The stock has 2 warning signs investors should review. Among 1,014 Oil & Gas companies, Texas Pacific Land ranks better than 85.7% on this metric.
The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations. It is calculated as a company's Total Current Assets divides by its Total Current Liabilities. Texas Pacific Land's current ratio for the quarter that ended in Mar. 2026 was 4.23.
Texas Pacific Land has a current ratio of 4.23. It indicates the company may not be efficiently using its current assets or its short-term financing facilities. This may also indicate problems in working capital management.
The historical rank and industry rank for Texas Pacific Land's Current Ratio or its related term are showing as below:
TPL'
s Current Ratio Range Over the Past 10 Years
Min: 4.23 Med: 10.82 Max: 31.67
Current: 4.23
During the past 13 years, Texas Pacific Land's highest Current Ratio was 31.67. The lowest was 4.23. And the median was 10.82.
TPL's Current Ratio is ranked better than 85.7% of 1014
companies
in the Oil & Gas industry
Industry Median: 1.35
vs TPL: 4.23
Texas Pacific Land (NYSE:TPL) Current Ratio Explanation
The current ratio can give a sense of the efficiency of a company's operating cycle or its ability to turn its product into cash. Companies that have trouble getting paid on their receivables or have long inventory turnover can run into liquidity problems because they are unable to alleviate their obligations. Because business operations differ in each industry, it is always more useful to compare companies within the same industry.
Acceptable current ratios vary from industry to industry and are generally between 1 and 3 for healthy businesses.
The higher the current ratio, the more capable the company is of paying its obligations. A ratio under 1 suggests that the company would be unable to pay off its obligations if they came due at that point. While this shows the company is not in good financial health, it does not necessarily mean that it will go bankrupt - as there are many ways to access financing - but it is definitely not a good sign.
If all other things were equal, a creditor, who is expecting to be paid in the next 12 months, would consider a high current ratio to be better than a low current ratio, because a high current ratio means that the company is more likely to meet its liabilities which fall due in the next 12 months.
Texas Pacific Land Current Ratio Related Terms
Texas Pacific Land Current Ratio Historical Data
* Premium members only.
The historical data trend for Texas Pacific Land's Current 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.
For the Oil & Gas E&P subindustry, Texas Pacific Land's Current Ratio, along with its competitors' market caps and Current 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 Current Ratio vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Texas Pacific Land's Current Ratio distribution charts can be found below:
* The bar in red indicates where Texas Pacific Land's Current Ratio falls into.
* 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 (TPL) has a Current Ratio of 4.23 as of Mar. 2026. This is 61% below median its historical median of 10.82. Over the past decade, Texas Pacific Land's Current Ratio has ranged from 4.23 to 31.67. According to the industry distribution chart, Texas Pacific Land ranks #145 out of 1014 companies in the Oil & Gas industry, placing it in the top 14.3%.
Is Texas Pacific Land's Current Ratio too high?
Texas Pacific Land's current Current Ratio of 4.23 is 61% below median its 10-year median of 10.82. Over the past 10 years, this metric has ranged from a low of 4.23 to a high of 31.67. The Oil & Gas industry median Current Ratio is 1.35. Texas Pacific Land's value of 4.23 is 213.3% above this industry median. Based on the distribution chart, Texas Pacific Land ranks #145 out of 1014 companies in the Oil & Gas industry, which is in the top quartile — a strong position relative to peers. Overall, Texas Pacific Land has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Texas Pacific Land's Current Ratio compare to EQT and EXE?
According to the Oil & Gas industry distribution chart, Texas Pacific Land ranks #145 out of 1014 companies for Current Ratio. This places Texas Pacific Land in the top 14% of its industry — outperforming the majority of peers. The industry median Current Ratio is 1.35. Texas Pacific Land's value of 4.23 is 213.3% above this benchmark. Historically, Texas Pacific Land's own Current Ratio has ranged from 4.23 to 31.67 over the past decade. While the company's 10-year median is 10.82 vs. the industry median of 1.35, Texas Pacific Land has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Current Ratio for an Oil & Gas company?
The median Current Ratio among Oil & Gas companies is 1.35, based on 1,014 companies in the industry. Companies in the top quartile (top 25%) have a Current Ratio significantly above this median, while those in the bottom quartile fall well below. However, Current Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Texas Pacific Land's current Current Ratio of 4.23 is 213.3% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Current Ratio mean?
A high Current Ratio can signal that a stock is expensive relative to its fundamentals. For the Oil & Gas industry, the median Current Ratio is 1.35 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Texas Pacific Land's current Current Ratio is 4.23, which is 61% below median its own 10-year median of 10.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Texas Pacific Land stock overvalued right now?
Based on GuruFocus' analysis, Texas Pacific Land (TPL) is currently considered Fairly Valued. The stock's GF Value™ is $369.98, compared to a current price of $407.20 — trading 10.1% above its estimated fair value. The current Current Ratio is 4.23, which is 61% below median its 10-year median of 10.82 and 213.3% above the Oil & Gas industry median of 1.35. Texas Pacific Land's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Current Ratio calculated?
Current Ratio is calculated from a company's financial statements. For Texas Pacific Land (TPL), the current Current Ratio is 4.23 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Texas Pacific Land (TPL) Overvalued in 2026?
Based on GuruFocus' analysis, Texas Pacific Land stock appears to be overvalued.
The current stock price of $407.20 is trading 10.1% above its estimated GF Value™ of $369.98.
GuruFocus considers Texas Pacific Land to be Fairly Valued.
Key valuation signals for TPL:
Current Ratio: 4.23 (61% below median its 10-year median of 10.82)
GF Value™: $369.98 vs. price of $407.20 (10.1% above fair value)
Industry Position: 213.3% above the Oil & Gas median (#145 of 1014)
No single metric tells the full story. See the TPL stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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. The group operates its business in two reportable segments: Land and Resource Management and Water Service and Operations. The Land and Resource Management segment, which generates maximum revenue, focuses on managing its several surface acres of land and its oil and gas royalty interests, principally concentrated in the Permian Basin. The revenue streams of this segment consist of royalties from oil and gas, revenues from easements and commercial leases, and land and material sales. The Water Services and Operations segment encompasses the business of providing a full-service water offering to operators in the Permian Basin.
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