Royal Gold Inc (RGLD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 195,498 | 127,882 | 74,232 | 137,950 | 104,167 | 102,901 | 106,157 | 126,816 | 118,586 | 122,238 | 280,617 | 183,707 | 160,208 | 225,916 | 370,260 | 381,859 | 413,116 | 319,128 | 93,715 | 80,504 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 2.30 | 1.48 | 0.61 | 1.79 | 1.44 | 1.45 | 1.68 | 2.31 | 1.86 | 1.90 | 4.38 | 3.71 | 2.66 | 4.34 | 5.91 | 6.68 | 7.36 | 7.33 | 1.88 | 1.82 |
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 varied over the years, indicating fluctuations in the company's ability to cover its short-term liabilities with its cash and cash equivalents.
From December 31, 2019, to June 30, 2020, the cash ratio experienced a substantial increase, reaching a peak of 7.36 on September 30, 2020. This high ratio suggests the company had a strong liquidity position during this period.
However, from December 31, 2020, to September 30, 2022, the cash ratio steadily declined, indicating a possible decrease in the company's ability to cover immediate obligations solely with cash holdings.
The ratio began to pick up again from March 31, 2023, to December 31, 2024, fluctuating within a range of 0.61 to 2.30. The lower ratios during this period may indicate a reduced liquidity position compared to previous years, possibly due to changes in the company's cash management or operational performance.
Overall, the analysis of Royal Gold Inc's cash ratio highlights the importance of closely monitoring liquidity levels to ensure the company can meet its short-term financial obligations efficiently.