Royal Gold Inc (RGLD)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 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 | 4.11 |
| Cash ratio | 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 | 4.03 |
The liquidity ratios of Royal Gold Inc show fluctuations over the past several quarters.
The current ratio, which measures the firm's ability to cover its short-term liabilities with its current assets, has been on a decreasing trend from a peak of 8.37 in December 2020 to a low of 1.09 in June 2024. This decline may indicate potential difficulties in meeting short-term obligations using current assets.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, also shows a decreasing trend from a high of 7.44 in March 2020 to a low of 0.65 in June 2024. This suggests a potential decrease in the company's ability to meet its short-term obligations without relying on selling inventory.
The cash ratio, which provides the most conservative measure of liquidity by focusing solely on cash and near-cash assets, has followed a similar trend, decreasing from 7.36 in March 2020 to 0.61 in June 2024. This indicates a potential decline in Royal Gold's ability to cover its short-term liabilities with its most liquid assets.
Overall, the decreasing trends in these liquidity ratios may raise concerns about Royal Gold's short-term liquidity position. It is essential for the company to closely monitor and manage its liquidity position to ensure it can meet its obligations and sustain its operations effectively.
Additional liquidity measure
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -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 | 31.02 |
The cash conversion cycle of Royal Gold Inc has shown fluctuations over the past few quarters. A negative cash conversion cycle indicates that the company is able to convert its investments in inventory back to cash quickly, which is generally a positive sign.
In the most recent quarter, the company had a cash conversion cycle of -3.19 days, suggesting an efficient management of cash flows. This improved performance compared to the previous quarter with a positive cash conversion cycle of 1.42 days.
However, looking back at the historical trend, there have been periods of higher cash conversion cycles, such as in the quarters of Dec 31, 2022, and Sep 30, 2022, where the company had longer cash conversion cycles of 18.17 days and 26.76 days, respectively. These longer cycles may indicate delays in the conversion of inventory to sales and subsequently to cash.
Overall, Royal Gold Inc should continue to monitor and manage its cash conversion cycle effectively to ensure the efficient utilization of its working capital and improve its overall financial performance.