Royal Gold Inc (RGLD)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 195,498 | 104,167 | 118,586 | 225,916 | 319,128 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 85,151 | 72,422 | 63,587 | 52,083 | 43,555 |
| Cash ratio | 2.30 | 1.44 | 1.86 | 4.34 | 7.33 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($195,498K
+ $—K)
÷ $85,151K
= 2.30
The cash ratio of Royal Gold Inc has shown a declining trend over the years, from 7.33 on June 30, 2020, to 2.30 on December 31, 2024. This indicates that the company's ability to cover its short-term liabilities with cash and cash equivalents has weakened over time. However, it is important to note that a cash ratio above 1.0 indicates that the company has enough cash to cover its short-term obligations, and Royal Gold Inc consistently maintains a cash ratio above this threshold. While the decreasing trend raises concerns about liquidity management, the company still appears to have a relatively healthy level of cash reserves compared to its current liabilities.