Royal Gold Inc (RGLD)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 167,426 | 185,833 | 297,135 | 362,150 | 154,679 |
| Total current liabilities | US$ in thousands | 72,422 | 63,587 | 52,083 | 43,555 | 33,610 |
| Current ratio | 2.31 | 2.92 | 5.71 | 8.31 | 4.60 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $167,426K ÷ $72,422K
= 2.31
The current ratio of Royal Gold, Inc. has exhibited a declining trend over the past five years, decreasing from 4.60 in June 2019 to 2.31 in December 2023. This indicates that the company's ability to meet its short-term obligations with its current assets has weakened. The current ratio of 2.31 as of December 2023 suggests that Royal Gold may face challenges in paying off its current liabilities with its current assets in the near term. It is important for the company to closely monitor its liquidity position and explore strategies to improve its current ratio to ensure financial stability and operational continuity.