Royal Gold Inc (RGLD)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 104,167 | 118,586 | 225,916 | 319,128 | 119,475 |
| Short-term investments | US$ in thousands | — | — | — | — | 16,000 |
| Receivables | US$ in thousands | 2,676 | 3,066 | 4,520 | 2,435 | 2,702 |
| Total current liabilities | US$ in thousands | 72,422 | 63,587 | 52,083 | 43,555 | 33,610 |
| Quick ratio | 1.48 | 1.91 | 4.42 | 7.38 | 4.11 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($104,167K
+ $—K
+ $2,676K)
÷ $72,422K
= 1.48
The quick ratio for Royal Gold, Inc. has exhibited a declining trend in recent years, dropping from 8.03 in June 30, 2020, to 2.17 in December 31, 2023. This ratio measures the company's ability to meet its short-term obligations with its most liquid assets. Although the quick ratio has decreased over the years, the current value of 2.17 as of December 31, 2023, indicates that the company still maintains a strong liquidity position, with more than twice the amount of liquid assets to cover its current liabilities. This suggests that Royal Gold, Inc. has a healthy level of liquidity to meet its short-term financial obligations.