Royal Gold Inc (RGLD)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.69% | 53.56% | 51.34% | 47.32% | 42.21% |
| Operating profit margin | 50.06% | 47.03% | 52.05% | 39.88% | 33.26% |
| Pretax margin | 46.47% | 45.08% | 52.33% | 39.23% | 26.31% |
| Net profit margin | 39.53% | 39.62% | 46.64% | 39.96% | 22.18% |
Royal Gold, Inc. has shown consistent and strong profitability over the five-year period ending December 31, 2023, as evidenced by its increasing gross profit margin, operating profit margin, pretax margin, and net profit margin.
The gross profit margin, which indicates the percentage of revenue left after accounting for the cost of goods sold, has steadily increased from 81.67% in June 30, 2019, to 85.06% in December 31, 2023. This suggests that Royal Gold has been effectively controlling its production costs and generating higher profits.
The operating profit margin, which measures the company's ability to generate profits from its core operations, has also improved over the years. The margin increased from 33.26% in June 30, 2019, to 50.06% in December 31, 2023, reflecting increasing operational efficiency and profitability.
The pretax margin, showing the percentage of profits before taxes in relation to total revenue, has demonstrated consistent growth, reaching 46.58% by December 31, 2023, compared to 25.19% on June 30, 2019. This indicates the company's ability to manage expenses and generate higher profits.
Furthermore, the net profit margin, which represents the percentage of revenue that translates into net income, has also shown a positive trend, increasing from 22.18% in June 30, 2019, to 39.53% by December 31, 2023. This signifies effective cost management, improved operational efficiency, and strong overall financial performance.
Overall, Royal Gold, Inc.'s profitability ratios indicate a consistent upward trend, reflecting the company's ability to efficiently manage costs, enhance operational performance, and deliver strong financial results over the five-year period.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.02% | 8.03% | 12.73% | 7.19% | 5.53% |
| Return on assets (ROA) | 7.12% | 6.76% | 11.41% | 7.21% | 3.69% |
| Return on total capital | 9.67% | 8.56% | 13.55% | 7.73% | 5.98% |
| Return on equity (ROE) | 8.29% | 8.72% | 12.15% | 8.77% | 4.39% |
Over the past five years, Royal Gold, Inc. has demonstrated consistent profitability based on the profitability ratios analyzed. The Operating return on assets (Operating ROA) has shown a gradual increase from 5.53% in 2019 to 9.02% in 2023, indicating the company's ability to generate operating income relative to its total assets has improved over time.
Return on assets (ROA) has also exhibited a positive trend, increasing from 3.69% in 2019 to 7.12% in 2023, reflecting the company's efficiency in generating profits from its assets. This indicates that Royal Gold, Inc. has been utilizing its assets effectively to generate earnings for its shareholders.
The return on total capital and return on equity (ROE) ratios further reinforce the company's strong performance, showing a similar upward trend over the five-year period. ROE increased from 4.39% in 2019 to 8.29% in 2023, demonstrating the shareholder value created by the company. Return on total capital has also improved from 5.98% in 2019 to 9.67% in 2023, indicating the overall effectiveness of the company in generating returns for both debt and equity holders.
Overall, the profitability ratios suggest that Royal Gold, Inc. has been successful in generating profits and creating value for its stakeholders over the past five years.