Royal Gold Inc (RGLD)
Days of sales outstanding (DSO)
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 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 | 156.57 | |
| DSO | days | 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 | 2.33 |
June 30, 2024 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 108.97
= 3.35
Days Sales Outstanding (DSO) is a key metric used to evaluate the efficiency of Royal Gold Inc in collecting accounts receivable. It represents the average number of days it takes for the company to collect payment after making a sale. A lower DSO indicates faster collection of receivables, which is generally favorable as it reflects strong liquidity and efficient working capital management.
Analyzing the trend in Royal Gold Inc's DSO over the past few quarters, we observe fluctuations in the metric. In the most recent quarter ending June 30, 2024, the DSO increased to 3.35 days from 1.94 days in the previous quarter. This uptick suggests a slight slowdown in collecting receivables compared to the prior period.
Looking further back, there have been periods of both decreasing and increasing DSO values. For instance, there was a significant spike in DSO to 8.94 days in the quarter ending September 30, 2022, which may have indicated delays in collection efforts or changes in customer payment behavior.
It is worth noting that the company has also demonstrated periods of significantly low DSO, such as 1.03 days in the quarter ending March 31, 2023, which reflects efficient accounts receivable management and prompt collection practices. However, it is essential to monitor fluctuations in DSO closely to understand the underlying factors driving changes in the metric and whether they require attention from management.
Overall, while Royal Gold Inc has shown variability in its DSO over the periods analyzed, maintaining a relatively low DSO on average is crucial for optimizing cash flow and ensuring financial stability. Continued monitoring and analysis of DSO trends will be important in assessing the company's ability to manage working capital effectively.