Royal Gold Inc (RGLD)
Quick ratio
| Dec 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 195,498 | 127,882 | 74,232 | 137,950 | 104,167 | 102,901 | 106,157 | 126,816 | 118,586 | 122,238 | 280,617 | 183,707 | 160,208 | 225,916 | 370,260 | 381,859 | 413,116 | 319,128 | 93,715 | 80,504 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,139 | 10,190 | 5,637 | 3,109 | 2,676 | 14,248 | 9,602 | 1,724 | 3,066 | 15,056 | 7,712 | 4,397 | 4,081 | 4,520 | 14,669 | 8,939 | 4,298 | 2,435 | 11,361 | 9,671 |
| Total current liabilities | US$ in thousands | 85,151 | 86,323 | 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 |
| Quick ratio | 2.31 | 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 |
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 has fluctuated over the years, indicating changes in the company's liquidity position. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In December 2019, Royal Gold Inc had a quick ratio of 2.04, indicating that it had $2.04 in liquid assets for every $1 of current liabilities. This ratio improved slightly to 2.11 in March 2020 before significantly increasing to 7.38 by June 2020 and further to 7.44 by September 2020. These high ratios suggest the company had a strong ability to cover its short-term liabilities with its quick assets during this period.
However, the quick ratio started to decline from December 2020 onwards, indicating potential changes in the company's liquidity position. The ratio decreased to 6.84 in December 2020, 6.14 in March 2021, and 4.42 in June 2021. By September 2021, the quick ratio dropped further to 2.73, signaling a decrease in liquidity.
Although there was a temporary improvement to 3.80 in March 2022 and 4.50 in June 2022, the quick ratio fell to 2.13 by September 2022 and continued to decrease in subsequent periods. By December 2024, the quick ratio was 2.31, indicating a decreased ability to cover short-term liabilities with liquid assets compared to previous periods.
Overall, the trend in Royal Gold Inc's quick ratio suggests fluctuations in the company's liquidity position, with periods of high liquidity followed by declines in liquidity. It is essential for the company to closely monitor its quick ratio to ensure it maintains a healthy liquidity position to meet its short-term obligations effectively.