Royal Gold Inc (RGLD)
Payables 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 |
| Payables | US$ in thousands | 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 | 3,496 |
| Payables turnover | 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 | 35.94 |
September 30, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $135,579K ÷ $13,245K
= 10.24
The payables turnover ratio for Royal Gold Inc has shown fluctuations over the past few quarters. The trend indicates a general decrease in payables turnover from a peak of 113.71 in December 2019 to a low of 9.80 in June 2024. This could suggest changes in the company's payment practices or relationships with suppliers.
A high payables turnover ratio suggests that the company is paying off its suppliers quickly, which may indicate strong liquidity or good relationships with suppliers. Conversely, a low payables turnover ratio may imply that the company is taking longer to pay its suppliers, which could potentially strain relationships or indicate cash flow issues.
It's important to track the payables turnover ratio over time and compare it to industry benchmarks to assess how efficiently Royal Gold Inc is managing its accounts payable and sustaining relationships with its suppliers. Further analysis and context regarding the company's operations and industry dynamics would provide a more comprehensive understanding of the significance of these fluctuations in the payables turnover ratio.