Royal Gold Inc (RGLD)
Current 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 275,287 | 202,105 | 133,498 | 193,048 | 167,426 | 163,766 | 165,249 | 189,164 | 185,833 | 181,783 | 340,340 | 258,645 | 232,083 | 297,135 | 446,322 | 450,491 | 469,825 | 362,150 | 150,577 | 136,442 |
| 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 |
| Current ratio | 3.23 | 2.34 | 1.09 | 2.50 | 2.31 | 2.31 | 2.62 | 3.44 | 2.92 | 2.82 | 5.32 | 5.22 | 3.85 | 5.71 | 7.12 | 7.88 | 8.37 | 8.31 | 3.02 | 3.09 |
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 exhibited some fluctuations over the past few years. As of December 31, 2019, the current ratio was 3.09, indicating that the company had $3.09 in current assets for every $1 of current liabilities. The ratio remained relatively stable above 3 throughout 2020 and 2021, signifying a strong ability to meet short-term obligations.
However, there was a significant increase in the current ratio in the second quarter of 2022 to 8.31, which continued to rise to 8.37 by September 30, 2020, suggesting a substantial increase in current assets relative to current liabilities. This may be attributed to changes in the company's working capital management or liquidity position during this period.
Subsequently, the current ratio declined, reaching 1.09 as of June 30, 2024, indicating a potential liquidity strain or a decreased ability to cover short-term obligations. It rebounded to 3.23 by December 31, 2024, although it remained below the levels seen in previous years.
Overall, the current ratio of Royal Gold Inc has shown variability over the reporting periods, implying fluctuations in the company's liquidity position and its ability to manage short-term obligations effectively. Monitoring this ratio closely is essential to assess the company's financial health and working capital management.