Royal Gold Inc (RGLD)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	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
Revenue (ttm)	US$ in thousands	719,395	669,501	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
Total current assets	US$ in thousands	275,287	202,105	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
Total current liabilities	US$ in thousands	85,151	86,323	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
Working capital turnover		3.78	5.78	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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $719,395K ÷ ($275,287K – $85,151K)
= 3.78

The working capital turnover ratio for Royal Gold Inc fluctuated over the past few years. The ratio measures how efficiently the company is utilizing its working capital to generate revenue.

From December 31, 2019, to March 31, 2023, the working capital turnover ratio ranged from 1.36 to 6.63, showing some variability in the company's working capital management efficiency.

Notably, there was a significant spike in the ratio on June 30, 2024, reaching 55.27, which is unusually high and may indicate either a sudden increase in revenue generation or a significant decrease in working capital during that period.

Overall, it is essential for Royal Gold Inc to maintain a moderate level of working capital turnover to ensure efficient allocation of resources and sustainable growth in the long term.