Royal Gold Inc (RGLD)
Inventory turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 135,579 | 129,594 | 127,395 | 130,284 | 137,807 | 137,309 | 137,980 | 133,541 | 130,289 | 131,364 | 126,613 | 126,650 | 121,641 | 118,288 | 121,305 | 117,315 | 115,427 | 170,684 | 145,970 | 125,651 |
| Inventory | US$ in thousands | 11,620 | 10,904 | 11,417 | 9,788 | 9,851 | 10,657 | 11,599 | 12,656 | 13,691 | 13,172 | 8,490 | 12,222 | 17,684 | 14,491 | 13,900 | 17,159 | 11,671 | 11,947 | 15,336 | 10,772 |
| Inventory turnover | 11.67 | 11.88 | 11.16 | 13.31 | 13.99 | 12.88 | 11.90 | 10.55 | 9.52 | 9.97 | 14.91 | 10.36 | 6.88 | 8.16 | 8.73 | 6.84 | 9.89 | 14.29 | 9.52 | 11.66 |
September 30, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $135,579K ÷ $11,620K
= 11.67
Inventory turnover for Royal Gold Inc has been fluctuating over the past few years, ranging from as low as 6.84 to as high as 14.91. The inventory turnover ratio measures how efficiently the company is managing its inventory by indicating how many times the inventory is sold and replaced over a specific period. A higher inventory turnover generally indicates that the company is selling its inventory quickly and efficiently.
In the most recent period, ending on September 30, 2024, the inventory turnover ratio was 11.67, showing a slight decrease compared to the previous quarter. While the trend has been relatively stable, variations in inventory turnover ratios could suggest changes in sales volume, inventory management practices, or industry dynamics.
Overall, the inventory turnover ratios for Royal Gold Inc indicate a reasonably efficient management of inventory levels, ensuring that the company is not holding excess inventory that could tie up capital. Monitoring inventory turnover over time can provide valuable insights into the company's operational efficiency and effectiveness in managing inventory.