Royal Gold Inc (RGLD)
Days of sales outstanding (DSO)
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 65.70 | 108.97 | 187.91 | 226.35 | 43.24 | 63.41 | 354.55 | 196.74 | 40.82 | 84.45 | 147.24 | 157.66 | 143.75 | 41.02 | 66.62 | 130.49 | 204.85 | 43.53 | 48.38 | 119.48 | |
| DSO | days | 5.56 | 3.35 | 1.94 | 1.61 | 8.44 | 5.76 | 1.03 | 1.86 | 8.94 | 4.32 | 2.48 | 2.32 | 2.54 | 8.90 | 5.48 | 2.80 | 1.78 | 8.38 | 7.54 | 3.05 |
September 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 65.70
= 5.56
To analyze Royal Gold Inc's Days Sales Outstanding (DSO) based on the provided data, we observe fluctuations in the DSO over multiple quarters. DSO represents the average number of days it takes for a company to collect revenue after a sale has been made. A lower DSO is typically favorable as it indicates quicker turnover of accounts receivable and better cash flow management.
Looking at the trend, we can see that the DSO was relatively low and stable in the beginning of the observation period, around 1-3 days. This suggests efficient collection of sales proceeds. However, there were spikes in DSO around Sep 30, 2019, and Dec 31, 2020, indicating potential delays in collecting receivables during those periods.
The DSO increased notably and peaked at 8.94 days on Sep 30, 2022, before decreasing again in subsequent quarters. Such an increase in DSO may raise concerns about the company's credit and collection policies, potentially impacting liquidity and working capital management.
It is worth noting that there was a significant improvement in DSO from Mar 31, 2023, to Jun 30, 2024, where it decreased from 5.76 days to 3.35 days, reflecting enhanced efficiency in receivables management.
Overall, monitoring and managing DSO is crucial for Royal Gold Inc to ensure timely collection of accounts receivable and maintain healthy cash flows. Addressing any prolonged increases in DSO could help improve working capital efficiency and financial performance in the long run.