Royal Gold Inc (RGLD)

Days of Sales Outstanding (DSO) is a key metric that indicates the average number of days it takes for a company to collect payment after making a sale. For Royal Gold Inc, the trend in DSO over the past few years has been relatively stable initially, showing a slight increase from 1.78 days as of June 30, 2020, to 2.54 days as of June 30, 2021. However, starting from December 31, 2022, there has been a noticeable improvement in DSO, decreasing to 1.86 days by the end of 2022 and further dropping to 1.61 days by the end of 2023.

The most significant change occurred by the end of December 31, 2024, where the DSO plummeted to just 0.58 days. This substantial decrease in DSO indicates that Royal Gold Inc has become more efficient in collecting payments from customers, possibly due to improved billing processes or tighter credit controls. Overall, the decreasing trend in DSO over the years suggests that the company has been managing its accounts receivable effectively, leading to quicker cash conversion and potentially enhancing its liquidity position.