Royal Gold Inc (RGLD)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 275,287 | 167,426 | 185,833 | 297,135 | 362,150 |
| Total current liabilities | US$ in thousands | 85,151 | 72,422 | 63,587 | 52,083 | 43,555 |
| Current ratio | 3.23 | 2.31 | 2.92 | 5.71 | 8.31 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $275,287K ÷ $85,151K
= 3.23
The current ratio of Royal Gold Inc has been exhibiting fluctuations over the years. As of June 30, 2020, the current ratio was notably high at 8.31, indicating a strong ability to cover short-term obligations with current assets. However, by June 30, 2021, the current ratio decreased to 5.71, although it still remained at a healthy level.
Subsequently, there was a significant decline in the current ratio to 2.92 as of December 31, 2022, and further down to 2.31 by the end of December 31, 2023. These lower ratios suggest a potential challenge in meeting short-term liabilities with current assets during these periods.
The current ratio slightly improved to 3.23 as of December 31, 2024, but it remains below the levels seen in the earlier years. This indicates that while there has been some recovery, Royal Gold Inc may still need to closely manage its liquidity position to ensure it can meet its short-term financial obligations effectively.