Royal Gold Inc (RGLD)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 138,789 | 130,284 | 133,541 | 121,285 | 115,426 |
| Inventory | US$ in thousands | 12,973 | 9,788 | 12,656 | 17,684 | 11,671 |
| Inventory turnover | 10.70 | 13.31 | 10.55 | 6.86 | 9.89 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $138,789K ÷ $12,973K
= 10.70
The inventory turnover ratio of Royal Gold Inc has shown fluctuations over the past five periods. It decreased from 9.89 on June 30, 2020, to 6.86 on June 30, 2021, indicating a slower rate of inventory turnover. However, there has been a steady increase in inventory turnover since then, reaching 10.55 on December 31, 2022, 13.31 on December 31, 2023, and then slightly dropping to 10.70 on December 31, 2024.
A higher inventory turnover ratio suggests that the company is managing its inventory efficiently, selling goods quickly, and replenishing stock effectively. Conversely, a lower ratio may indicate slow-moving or obsolete inventory, which could tie up resources and impact profitability. Royal Gold Inc's fluctuating inventory turnover ratio reflects changes in its inventory management practices and sales efficiency over the analyzed periods. Further analysis of the company's operations and market conditions could provide insights into the reasons behind these fluctuations.