Royal Gold Inc (RGLD)
Days of sales outstanding (DSO)
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 631.60 | 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 | |
| DSO | days | 0.58 | 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 |
December 31, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 631.60
= 0.58
Days Sales Outstanding (DSO) is a crucial metric that indicates how long it takes for a company to collect payment after making a sale. For Royal Gold Inc, analyzing the trend in DSO over the past few quarters provides insights into the company's efficiency in collecting receivables.
Based on the provided data, Royal Gold Inc's DSO has shown fluctuations over the quarters. In December 2019, the DSO stood at 7.54 days, indicating that on average, it took the company approximately 7.54 days to collect its sales revenue. The DSO increased to 8.38 days by March 2020 but decreased significantly to 1.78 days by June 2020, possibly due to improved collection processes or seasonal factors.
Subsequently, the DSO figures fluctuated between 1.78 days and 8.94 days until December 2024. This fluctuation suggests that Royal Gold Inc may have experienced variations in its sales collection efficiency over the quarters. It is essential for the company to closely monitor and manage its DSO to ensure proper cash flow management and timely collection of accounts receivable.
Overall, analyzing Royal Gold Inc's DSO trend provides valuable insights into its effectiveness in managing accounts receivable and collecting payments from customers. Management should continue to focus on optimizing collections processes to maintain a healthy cash flow position and operational efficiency.