Royal Gold Inc (RGLD)

Current ratio

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 Jun 30, 2019
Total current assets US$ in thousands 133,498 193,048 167,426 163,766 165,249 189,164 185,833 181,783 340,340 258,645 232,083 297,135 446,322 450,491 469,825 362,150 150,577 136,442 164,210 154,679
Total current liabilities US$ in thousands 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 33,610
Current ratio 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 5.07 4.60

June 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $133,498K ÷ $122,383K
= 1.09

The current ratio of Royal Gold Inc has displayed fluctuations over the past several quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets.

Initially, the current ratio was relatively stable around 2 to 3, indicating the company had sufficient current assets to meet its short-term obligations. However, there was a significant spike in the current ratio in the latter half of 2021 and early 2022, reaching levels as high as 5 to 8. This surge suggested a substantial increase in the company's current assets relative to its short-term liabilities.

Subsequently, the current ratio declined in the latter part of 2022, and throughout 2023, but remained above 2, indicating that Royal Gold Inc still had an adequate buffer to cover its short-term obligations.

It is important to note that a current ratio above 1 generally indicates that a company can meet its short-term liabilities, but a ratio too high may imply that the company is not effectively utilizing its current assets. Conversely, a ratio below 1 could signal liquidity issues.

In summary, Royal Gold Inc's current ratio has fluctuated over the periods analyzed, but overall, it has generally maintained a healthy level of liquidity to cover its short-term liabilities.