Royal Gold Inc (RGLD)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 121,970 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 32,373 |
| Cash ratio | 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 | 3.77 |
September 30, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($127,882K
+ $—K)
÷ $86,323K
= 1.48
The cash ratio of Royal Gold Inc has fluctuated over the past few quarters, ranging from a low of 0.61 in June 2024 to a high of 7.36 in December 2020. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents.
A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of funding. In the case of Royal Gold Inc, the cash ratio has generally been at healthy levels, with values above 1 indicating that the company has more than enough cash to cover its current liabilities.
The significant increase in the cash ratio in recent quarters, particularly peaking at 7.36 in December 2020, could indicate improved liquidity and financial health for the company during that period. However, fluctuations in the cash ratio in subsequent quarters suggest variability in the company's cash position and ability to meet short-term obligations.
Overall, the trend of Royal Gold Inc's cash ratio over the historical period suggests that the company has maintained a fairly strong liquidity position, with variations likely influenced by factors such as operational performance, investment activities, and capital management strategies. It is important for investors and stakeholders to monitor these fluctuations to assess the company's ability to manage its cash effectively and meet its financial obligations in the short term.