Royal Gold Inc (RGLD)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 104,167 | 118,586 | 225,916 | 319,128 | 119,475 |
| Short-term investments | US$ in thousands | — | — | — | — | 16,000 |
| Total current liabilities | US$ in thousands | 72,422 | 63,587 | 52,083 | 43,555 | 33,610 |
| Cash ratio | 1.44 | 1.86 | 4.34 | 7.33 | 4.03 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($104,167K
+ $—K)
÷ $72,422K
= 1.44
The cash ratio of Royal Gold, Inc. has shown a decreasing trend over the past five periods, from 7.34 on June 30, 2020, to 1.45 on Dec 31, 2023. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations. In this case, the declining trend in the cash ratio suggests a potential decrease in the company's liquidity and ability to cover its short-term debts. It is important for investors and analysts to further investigate the reasons behind this trend and assess the company's overall financial health and liquidity position.