Royal Gold Inc (RGLD)
Cash conversion cycle
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 31.28 | 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 |
| Days of sales outstanding (DSO) | days | 5.56 | 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 |
| Number of days of payables | days | 35.66 | 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 |
| Cash conversion cycle | days | 1.18 | -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 |
September 30, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 31.28 + 5.56 – 35.66
= 1.18
The cash conversion cycle of Royal Gold Inc has shown fluctuations over the past few quarters. A negative cash conversion cycle indicates that the company is able to convert its investments in inventory and receivables into cash more quickly than it needs to pay its liabilities, which can be advantageous.
In the most recent quarter, as of September 30, 2024, the cash conversion cycle was 1.18 days, indicating that the company is efficiently managing its working capital and converting its assets into cash quickly. This is a positive sign for the company's liquidity and operational efficiency.
In contrast, in previous quarters, the company experienced positive cash conversion cycles, with the cycle reaching its peak at 47.16 days in December 31, 2020. This indicates that the company took longer to convert its investments in inventory and receivables into cash, potentially leading to liquidity challenges and inefficiencies in its operations.
Overall, the trend of decreasing cash conversion cycle in recent quarters suggests that Royal Gold Inc has improved its working capital management and operational efficiency, leading to better cash flow and liquidity position. However, it is important for the company to continue monitoring and managing its cash conversion cycle to sustain its financial health and performance.