Royal Gold Inc (RGLD)

Activity ratios

Short-term

Turnover ratios

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
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
Receivables turnover 108.97 187.91 226.35 43.24 63.41 354.55 196.74 40.82 84.45 147.24 157.66 143.75 41.02 66.62 130.49 204.85 43.53 48.38 119.48 156.57
Payables turnover 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 37.38
Working capital turnover 55.27 5.04 6.38 6.63 5.96 4.56 4.93 5.24 2.36 3.10 3.74 2.65 1.57 1.51 1.36 1.57 4.91 5.07 3.35 3.49

The activity ratios of Royal Gold Inc over the past few quarters show varying trends in the efficiency of its operations:

1. Inventory Turnover: The inventory turnover ratio has been fluctuating over the quarters, ranging from a low of 6.84 to a high of 14.91. In general, the company is able to efficiently manage its inventory, with the ratio consistently above 10, indicating that inventory is turning over frequently.

2. Receivables Turnover: The receivables turnover ratio has shown significant volatility, with values ranging from a low of 40.82 to a high of 354.55. The company's ability to collect receivables efficiently has varied widely, with some quarters demonstrating exceptionally high turnover and others falling significantly.

3. Payables Turnover: The payables turnover ratio has been relatively stable, with values consistently above 10. This indicates that the company is managing its trade payables effectively, with a consistent turnover of payables throughout the periods analyzed.

4. Working Capital Turnover: The working capital turnover ratio has also displayed fluctuations, with values ranging from a low of 1.36 to a high of 55.27. This ratio reflects how efficiently the company generates revenue based on its working capital. The fluctuations suggest varying levels of efficiency in the utilization of working capital over the quarters.

Overall, the analysis of Royal Gold Inc's activity ratios indicates that the company has shown mixed performance in managing its assets, liabilities, and working capital efficiently. The trends observed highlight areas of strength as well as opportunities for improvement in optimizing operational efficiency.

Average number of days

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
Days of inventory on hand (DOH) days 30.71 32.71 27.42 26.09 28.33 30.68 34.59 38.35 36.60 24.47 35.22 53.06 44.71 41.82 53.39 36.91 25.55 38.35 31.29 38.45
Days of sales outstanding (DSO) days 3.35 1.94 1.61 8.44 5.76 1.03 1.86 8.94 4.32 2.48 2.32 2.54 8.90 5.48 2.80 1.78 8.38 7.54 3.05 2.33
Number of days of payables days 37.25 33.23 32.05 22.85 22.73 20.77 18.27 20.54 19.64 18.07 15.77 19.20 13.52 7.78 9.03 7.85 3.21 7.93 10.16 9.76

Based on the activity ratios provided for Royal Gold Inc, we can observe fluctuations in its operational efficiency over the reporting periods.

Days of Inventory on Hand (DOH) indicates that the company took an average of about 30 days to sell its inventory in the most recent quarter. The trend shows some variability, with the DOH ranging from a low of about 24 days to a high of around 53 days over the past few quarters. A decrease in DOH suggests improved inventory management efficiency.

Days of Sales Outstanding (DSO) reflects that Royal Gold Inc collected its accounts receivable within about 3 days on average in the latest quarter. The DSO has fluctuated significantly, ranging from less than 2 days to over 8 days. A lower DSO indicates a quicker collection of receivables, which is a positive sign for cash flow management.

Number of Days of Payables shows that the company took around 37 days on average to pay its suppliers in the most recent quarter. The trend in payables days seems to be stable, with minor fluctuations. A longer period of payables might indicate better cash flow management as the company delays payments to suppliers.

Overall, while Royal Gold Inc has shown some variability in its activity ratios over the reporting periods, the company appears to be managing its inventory, receivables, and payables efficiently, which is crucial for maintaining a healthy cash flow and operational performance.

Long-term

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
Fixed asset turnover — — — — — — 126.41 — — — 0.26 108.13 0.27 0.27 0.25 0.22 0.21 0.20 0.19 0.18
Total asset turnover 0.19 0.18 0.18 0.18 0.18 0.18 0.17 0.18 0.23 0.23 0.23 0.25 0.22 0.22 0.20 0.18 0.19 0.18 0.17 0.17

Royal Gold Inc's fixed asset turnover ratio has fluctuated over time, with significant variations observed in recent periods. In the most recent quarter, the ratio was not provided, indicating potential changes in the composition or valuation of fixed assets. However, in the previous quarters where data is available, the company showed a high fixed asset turnover, with values exceeding 100 in some instances. This suggests that the company efficiently utilizes its fixed assets to generate revenue.

On the other hand, the total asset turnover ratio has also shown fluctuations but has generally remained consistent around the range of 0.17 to 0.25. This ratio indicates the company's ability to generate sales relative to its total assets. The lower values compared to fixed asset turnover suggest that while Royal Gold Inc efficiently uses its fixed assets, it might not be as efficient in utilizing its total assets to generate revenue.

Overall, the analysis of Royal Gold Inc's long-term activity ratios indicates that the company has been effectively managing its fixed assets to generate revenue, although there is room for improvement in utilizing its total assets more efficiently.