Royal Gold Inc (RGLD)
Payables turnover
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 138,791 | 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 |
| Payables | US$ in thousands | 10,578 | 13,245 | 13,227 | 11,599 | 11,441 | 8,626 | 8,552 | 7,852 | 6,686 | 7,332 | 7,067 | 6,267 | 5,471 | 6,398 | 4,380 | 2,587 | 2,901 | 2,484 | 1,501 | 3,170 |
| Payables turnover | 13.12 | 10.24 | 9.80 | 10.98 | 11.39 | 15.98 | 16.06 | 17.57 | 19.97 | 17.77 | 18.59 | 20.20 | 23.15 | 19.01 | 27.01 | 46.89 | 40.44 | 46.47 | 113.71 | 46.05 |
December 31, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $138,791K ÷ $10,578K
= 13.12
The payables turnover ratio measures how efficiently a company is managing its accounts payable by evaluating how many times a company pays off its suppliers during a particular period.
Analyzing Royal Gold Inc's payables turnover data from December 31, 2019, to December 31, 2024, we can see fluctuations in the ratio.
In December 2019, the payables turnover ratio stood at 46.05, indicating that Royal Gold Inc was turning over its payables approximately 46 times during the year. The ratio increased significantly to 113.71 by March 2020, suggesting a more rapid turnover of payables during that period.
Subsequently, the payables turnover ratio fluctuated, with a declining trend from June 2020 to September 2021, indicating a slowdown in payables turnover. This could imply changes in payment terms with suppliers or a shift in the company's purchasing patterns.
From December 2021 to September 2024, the payables turnover ratio continued to decrease steadily, reaching 13.12 by December 2024. This decline may signify a longer payment cycle, potentially due to changes in the company's cash flow management or supplier relationships.
Overall, the decreasing trend in Royal Gold Inc's payables turnover ratio over the years suggests a lengthening of the accounts payable period, which may require further investigation into the company's liquidity management and supplier relationships.