Royal Gold Inc (RGLD)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.50% | 56.69% | 53.56% | 51.34% | 47.32% |
| Operating profit margin | 59.76% | 50.06% | 47.03% | 52.05% | 39.88% |
| Pretax margin | 59.17% | 46.47% | 45.08% | 52.33% | 39.23% |
| Net profit margin | 46.15% | 39.53% | 39.62% | 46.64% | 39.96% |
Royal Gold Inc has shown a positive trend in its profitability ratios over the years. The gross profit margin has increased steadily from 47.32% in June 2020 to 65.50% by December 2024, indicating the company's ability to control production costs and generate more profit from its core operations.
Similarly, the operating profit margin has shown consistent improvement, rising from 39.88% in June 2020 to 59.76% by December 2024. This suggests that Royal Gold Inc has been efficient in managing its operating expenses and has become more profitable over time.
The pretax margin has also followed an upward trajectory, increasing from 39.23% in June 2020 to 59.17% by December 2024. This indicates that the company has been able to effectively manage its pre-tax earnings relative to its revenue, resulting in higher profitability.
The net profit margin, which represents the bottom line profitability after all expenses and taxes, has shown a mixed trend. It increased from 39.96% in June 2020 to 46.64% in June 2021 but then decreased slightly to 46.15% by December 2024. Overall, the net profit margin remained at a healthy level, reflecting Royal Gold Inc's ability to generate profits for its shareholders.
In conclusion, Royal Gold Inc has demonstrated a strong performance in terms of profitability ratios, showcasing efficient cost management and solid operational performance over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.67% | 9.02% | 8.03% | 12.73% | 7.19% |
| Return on assets (ROA) | 9.79% | 7.12% | 6.76% | 11.41% | 7.21% |
| Return on total capital | 13.78% | 9.67% | 8.56% | 13.55% | 7.73% |
| Return on equity (ROE) | 10.65% | 8.29% | 8.72% | 12.15% | 8.77% |
Based on the provided data, we can analyze the profitability ratios of Royal Gold Inc over the years.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown an increasing trend from 7.19% on June 30, 2020, to 12.67% on December 31, 2024. This indicates that the company has been more efficient in generating operating income from its assets over time.
2. Return on Assets (ROA):
- The ROA has fluctuated but generally improved, with a peak of 11.41% on June 30, 2021. This ratio measures how effectively the company is utilizing its assets to generate earnings.
3. Return on Total Capital:
- The Return on Total Capital has also shown an increasing trend, reaching 13.78% on December 31, 2024. This ratio reflects the company's ability to generate profits from its total capital invested, including both equity and debt.
4. Return on Equity (ROE):
- The ROE has been relatively stable, with the highest value of 12.15% on June 30, 2021. This ratio indicates the company's ability to generate profit from the shareholders' equity.
Overall, Royal Gold Inc's profitability ratios show a generally positive trend, indicating improved efficiency in utilizing assets and generating returns for both equity and total capital providers. The company has been successful in translating its operational performance into profitability over the years.