Royal Gold Inc (RGLD)
Working capital 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 |
| Total current assets | US$ in thousands | 275,287 | 167,426 | 185,833 | 297,135 | 362,150 |
| Total current liabilities | US$ in thousands | 85,151 | 72,422 | 63,587 | 52,083 | 43,555 |
| Working capital turnover | 3.78 | 6.38 | 4.93 | 2.65 | 1.57 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $719,395K ÷ ($275,287K – $85,151K)
= 3.78
The working capital turnover of Royal Gold Inc has shown a positive trend over the years, indicating an improvement in efficiency in managing its working capital. The ratio increased from 1.57 in June 2020 to 6.38 in December 2023, showcasing a significant enhancement in the company's ability to generate revenue from its working capital. However, there was a slight decrease in efficiency in December 2024, with the ratio dropping to 3.78. Overall, the company's working capital turnover reveals a strong performance in utilizing its working capital to support its operations and generate revenue during the period under review.