Royal Gold Inc (RGLD)
Payables 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 |
| Payables | US$ in thousands | 10,578 | 11,441 | 6,686 | 6,398 | 2,484 |
| Payables turnover | 13.12 | 11.39 | 19.97 | 18.96 | 46.47 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $138,789K ÷ $10,578K
= 13.12
Based on the payables turnover data provided for Royal Gold Inc, we observe a fluctuating trend over the years. The payables turnover ratio, which measures how efficiently the company manages its accounts payable, decreased significantly from 46.47 in June 30, 2020, to 18.96 in June 30, 2021. This sharp decline indicates a slower rate of paying off suppliers or a potential increase in accounts payable.
However, there was a slight improvement in the payables turnover ratio in the subsequent years. By December 31, 2022, the ratio increased to 19.97, showing some progress in enhancing the efficiency of managing payables. Yet, the ratio declined again to 11.39 by December 31, 2023, suggesting a potential extension in the payment period to suppliers.
By December 31, 2024, the payables turnover ratio improved to 13.12, although it remained lower compared to the initial period in June 30, 2020. Overall, Royal Gold Inc's payables turnover performance indicates some variability in managing its accounts payable over the years, with fluctuations in the efficiency of paying off suppliers and managing working capital effectively.