Royal Gold Inc (RGLD)

Inventory turnover

		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
Cost of revenue (ttm)	US$ in thousands	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	108,024
Inventory	US$ in thousands	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	11,380
Inventory turnover		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	9.49

June 30, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $129,594K ÷ $10,904K
= 11.88

Royal Gold Inc's inventory turnover has exhibited fluctuations over the past several quarters. The ratio ranged from a low of 6.84 to a high of 14.91 during the period under analysis. The average inventory turnover was approximately 10.73, indicating that, on average, the company turned over its inventory around 10.73 times during the period.

A higher inventory turnover ratio suggests that the company is selling its inventory more efficiently, clearing out stock quickly, and generating revenue faster. Conversely, a lower ratio could indicate inefficiencies in inventory management or potential overstocking issues.

It is worth noting that Royal Gold Inc's inventory turnover ratio experienced some variability across different quarters, which may be due to seasonality, changes in demand for their products, or inventory management practices. Further analysis and comparison with industry benchmarks would provide deeper insights into the company's inventory management efficiency.