Royal Gold Inc (RGLD)
Receivables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 719,395 | 605,717 | 603,206 | 648,614 | 498,819 |
| Receivables | US$ in thousands | 1,139 | 2,676 | 3,066 | 4,520 | 2,435 |
| Receivables turnover | 631.60 | 226.35 | 196.74 | 143.50 | 204.85 |
December 31, 2024 calculation
Receivables turnover = Revenue ÷ Receivables
= $719,395K ÷ $1,139K
= 631.60
The receivables turnover ratio is a crucial metric used to evaluate how effectively a company efficiently manages its accounts receivable. Royal Gold Inc's receivables turnover has demonstrated varying trends over the years.
In June 2020, the receivables turnover ratio stood remarkably high at 204.85, indicating that Royal Gold Inc collected its accounts receivable outstanding 204.85 times during that period. However, by June 2021, the ratio had decreased to 143.50, implying a decline in the efficiency of collecting receivables compared to the previous year.
By December 31, 2022, the company's receivables turnover ratio improved to 196.74, suggesting a better collection efficiency compared to the previous year. This improvement continued into December 2023, where the ratio increased to 226.35, signifying an even stronger performance in collecting outstanding receivables.
Lastly, by December 31, 2024, the receivables turnover ratio surged significantly to 631.60, indicating an exceptional efficiency in collecting accounts receivable during that period.
It is important for Royal Gold Inc to monitor and analyze these trends in receivables turnover to ensure optimal cash flow management and efficient collection practices, which are vital for maintaining financial stability and liquidity.