Royal Gold Inc (RGLD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 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 | 5.07 |
| Quick ratio | 1.60 | 0.65 | 1.83 | 1.48 | 1.65 | 1.84 | 2.34 | 1.91 | 2.13 | 4.50 | 3.80 | 2.73 | 4.42 | 6.14 | 6.84 | 7.44 | 7.38 | 2.11 | 2.04 | 3.88 |
| 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 |
Royal Gold Inc's liquidity ratios have exhibited fluctuations over the past few quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, shows an increasing trend overall, with the ratio ranging from 2.31 to 8.37. This indicates that the company has improved its liquidity position in the short term.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows improvement over time, with values ranging from 1.48 to 7.44. This suggests that Royal Gold Inc has a stronger ability to meet its short-term obligations without relying on inventory liquidation.
The cash ratio, which provides the most conservative estimate of liquidity by considering only cash and cash equivalents, has also shown a positive trend, varying between 1.44 and 7.36. This indicates that the company has maintained a healthy level of cash reserves relative to its current liabilities, ensuring a strong liquidity position.
Overall, Royal Gold Inc's liquidity ratios demonstrate a generally favorable liquidity position, with improvements in the ability to meet short-term obligations without facing significant financial strain. However, management should continue to monitor these ratios to ensure consistent liquidity and financial stability.
Additional liquidity measure
| 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 conversion cycle | days | 1.18 | -3.19 | 1.42 | -3.02 | 11.69 | 11.35 | 10.94 | 18.17 | 26.76 | 21.29 | 8.89 | 21.77 | 36.40 | 40.10 | 39.52 | 47.16 | 30.83 | 30.72 | 37.97 | 24.19 |
The cash conversion cycle of Royal Gold Inc has demonstrated significant fluctuations over the past few quarters. In the most recent quarter ending September 30, 2024, the company's cash conversion cycle was 1.18 days, indicating that it took a little over a day to convert its investment in inventory back into cash through sales.
The previous quarter, ending June 30, 2024, had a negative cash conversion cycle of -3.19 days, suggesting that Royal Gold Inc was able to convert its inventory into cash before having to pay suppliers, which is a positive indicator of efficient working capital management.
Looking further back, there were periods of longer cash conversion cycles, such as in the quarter ending December 31, 2022, when the cycle was 18.17 days. This suggests that the company took longer to convert its investments in inventory and accounts receivable into cash.
Overall, Royal Gold Inc's cash conversion cycle has varied over the quarters, but it is important for the company to monitor and manage this metric consistently to ensure efficient use of its working capital and maintain healthy cash flows.