Royal Gold Inc (RGLD)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 226.35 | 196.74 | 143.50 | 204.85 | 156.57 | |
| DSO | days | 1.61 | 1.86 | 2.54 | 1.78 | 2.33 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 226.35
= 1.61
Days Sales Outstanding (DSO) is a metric used to assess how efficiently a company collects its accounts receivable. A lower DSO indicates quicker collection of receivables, reflecting a more efficient cash conversion cycle.
For Royal Gold, Inc., the trend in DSO over the past five periods shows some fluctuations. In December 2023, the DSO was 31.07 days, slightly lower than the 31.75 days in December 2022. Comparing these figures to the DSO of 30.68 days in June 2021, the current DSO remains relatively stable.
However, when looking at earlier periods, there was a notable increase in DSO from 22.04 days in June 2020 to 31.07 days in December 2023. This indicates a potential deterioration in the company's accounts receivable collection efficiency over this timeframe.
Furthermore, when compared to the DSO of 20.22 days in June 2019, it is evident that Royal Gold, Inc. may have room for improvement in accelerating its collections and managing its accounts receivable more effectively to enhance its overall liquidity position and operational efficiency.