Royal Gold Inc (RGLD)
Working capital turnover
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 605,717 | 603,206 | 648,614 | 498,819 | 423,056 |
| Total current assets | US$ in thousands | 167,426 | 185,833 | 297,135 | 362,150 | 154,679 |
| Total current liabilities | US$ in thousands | 72,422 | 63,587 | 52,083 | 43,555 | 33,610 |
| Working capital turnover | 6.38 | 4.93 | 2.65 | 1.57 | 3.49 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $605,717K ÷ ($167,426K – $72,422K)
= 6.38
Royal Gold, Inc.'s working capital turnover has exhibited an increasing trend over the past five years, indicating improved efficiency in managing its working capital. The company generated $6.38 in net sales for every dollar of working capital in 2023, representing a significant enhancement from the ratios of 4.93 in 2022, 2.51 in 2021, 1.57 in 2020, and 3.49 in 2019. This trend suggests that Royal Gold has been effectively utilizing its working capital to support its operations and generate revenue. The latest ratio of 6.38 indicates a strong ability to convert working capital into sales, reflecting positively on the company's liquidity and operational efficiency.