Royal Gold Inc (RGLD)
Cash conversion cycle
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 30.71 | 32.71 | 27.42 | 26.09 | 28.33 | 30.68 | 34.59 | 38.35 | 36.60 | 24.47 | 35.22 | 53.06 | 44.71 | 41.82 | 53.39 | 36.91 | 25.55 | 38.35 | 31.29 | 38.45 |
| Days of sales outstanding (DSO) | days | 3.35 | 1.94 | 1.61 | 8.44 | 5.76 | 1.03 | 1.86 | 8.94 | 4.32 | 2.48 | 2.32 | 2.54 | 8.90 | 5.48 | 2.80 | 1.78 | 8.38 | 7.54 | 3.05 | 2.33 |
| Number of days of payables | days | 37.25 | 33.23 | 32.05 | 22.85 | 22.73 | 20.77 | 18.27 | 20.54 | 19.64 | 18.07 | 15.77 | 19.20 | 13.52 | 7.78 | 9.03 | 7.85 | 3.21 | 7.93 | 10.16 | 9.76 |
| Cash conversion cycle | days | -3.19 | 1.42 | -3.02 | 11.69 | 11.35 | 10.94 | 18.17 | 26.76 | 21.29 | 8.89 | 21.77 | 36.40 | 40.10 | 39.52 | 47.16 | 30.83 | 30.72 | 37.97 | 24.19 | 31.02 |
June 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 30.71 + 3.35 – 37.25
= -3.19
The cash conversion cycle of Royal Gold Inc has exhibited fluctuation over the historical period. The company's ability to convert its resources efficiently can be assessed through this metric. A negative cash conversion cycle indicates that the company is able to collect cash from customers before paying its suppliers, which is often seen as a positive indicator.
In the most recent quarter, ending June 30, 2024, Royal Gold Inc's cash conversion cycle was -3.19 days, suggesting that the company efficiently converted its investments in inventory and accounts receivable into cash, possibly indicating effective management of working capital.
In comparison, the cycle was positive in the preceding quarter, ending March 31, 2024, at 1.42 days, indicating a slight delay in the conversion of investments into cash.
The company had a significantly longer cash conversion cycle in the quarter ending December 31, 2023, at -3.02 days, which could have been influenced by seasonal factors or specific business operations during that period.
Overall, Royal Gold Inc's cash conversion cycle has shown variability but has generally trended towards more efficient cash conversion in recent periods. Monitoring this metric over time can provide insights into the company's operational efficiency and financial health.