Royal Gold Inc (RGLD)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 130,284 | 133,541 | 121,285 | 115,426 | 108,023 |
| Payables | US$ in thousands | 11,441 | 6,686 | 6,398 | 2,484 | 2,890 |
| Payables turnover | 11.39 | 19.97 | 18.96 | 46.47 | 37.38 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $130,284K ÷ $11,441K
= 11.39
Based on the data provided for Royal Gold, Inc.'s payables turnover ratio over the past five periods, there appears to be a significant fluctuation in the efficiency with which the company is managing its payables.
The payables turnover ratio, which measures how quickly a company pays its suppliers, has shown a decreasing trend from December 31, 2019, to December 31, 2023. Specifically, the ratio decreased from 26.83 in June 30, 2019, to 7.91 in December 31, 2023, indicating that the company took longer to pay its suppliers in the most recent period compared to the earlier periods.
The significant decrease in the payables turnover ratio suggests that Royal Gold, Inc. may be taking more time to settle its payables obligations, which could have implications for its relationships with suppliers and its working capital management. It is essential for the company to closely monitor and effectively manage its payables turnover to ensure optimal cash flow and maintain positive supplier relationships. Further analysis of the reasons behind this trend and its impact on the company's financial performance would provide valuable insights into its financial management practices.