Royal Gold Inc (RGLD)
Working capital turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 614,281 | 584,227 | 605,717 | 616,031 | 608,843 | 611,242 | 603,205 | 614,656 | 651,254 | 647,402 | 643,407 | 649,762 | 601,700 | 595,548 | 560,831 | 498,819 | 494,548 | 467,889 | 441,838 | 423,056 |
| Total current assets | US$ in thousands | 133,498 | 193,048 | 167,426 | 163,766 | 165,249 | 189,164 | 185,833 | 181,783 | 340,340 | 258,645 | 232,083 | 297,135 | 446,322 | 450,491 | 469,825 | 362,150 | 150,577 | 136,442 | 164,210 | 154,679 |
| Total current liabilities | US$ in thousands | 122,383 | 77,145 | 72,422 | 70,847 | 63,068 | 54,998 | 63,587 | 64,476 | 64,013 | 49,543 | 60,264 | 52,083 | 62,691 | 57,154 | 56,139 | 43,555 | 49,830 | 44,130 | 32,373 | 33,610 |
| 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 |
June 30, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $614,281K ÷ ($133,498K – $122,383K)
= 55.27
The working capital turnover ratio of Royal Gold Inc has exhibited significant fluctuations over the past few quarters. The ratio measures the efficiency at which the company is utilizing its working capital to generate sales revenue.
In recent quarters, there has been considerable variability in the working capital turnover ratio, with the ratio reaching a high of 55.27 in June 2024 and a low of 1.36 in March 2021. Such fluctuations may indicate changes in the company's operational efficiency and management of working capital.
A higher working capital turnover ratio suggests that the company is effectively utilizing its working capital to generate sales, which can be seen in the significant increase in the ratio in June 2024. Conversely, a lower ratio may indicate inefficiencies in managing working capital, as observed in March 2021.
Overall, Royal Gold Inc should aim to maintain a consistent and preferably increasing trend in its working capital turnover ratio to optimize its use of working capital and enhance operational efficiency. Further analysis of the underlying reasons for the fluctuations in the ratio is recommended to assess the company's financial performance and future prospects accurately.