Royal Gold Inc (RGLD)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 195,498 | 104,167 | 118,586 | 225,916 | 319,128 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 1,139 | 2,676 | 3,066 | 4,520 | 2,435 |
| Total current liabilities | US$ in thousands | 85,151 | 72,422 | 63,587 | 52,083 | 43,555 |
| Quick ratio | 2.31 | 1.48 | 1.91 | 4.42 | 7.38 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($195,498K
+ $—K
+ $1,139K)
÷ $85,151K
= 2.31
The quick ratio of Royal Gold Inc, a measure of its short-term liquidity, has shown a declining trend over the years. As of June 30, 2020, the quick ratio was strong at 7.38, indicating the company had significant liquid assets to cover its current liabilities. However, by June 30, 2021, the quick ratio decreased to 4.42, still reflecting a healthy liquidity position but a notable decline from the previous year.
Subsequently, the quick ratio continued to decrease, reaching 1.91 as of December 31, 2022, and further dropping to 1.48 by December 31, 2023. These values suggest a tightening liquidity position, indicating that the company may have fewer liquid assets available to cover its short-term obligations.
However, there was a slight improvement in the quick ratio by December 31, 2024, when it increased to 2.31. While this uptick may indicate a slightly better liquidity position compared to the previous year, the company may still need to closely monitor and manage its short-term liquidity to ensure it can meet its current obligations efficiently.