Royal Gold Inc (RGLD)

Net profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Jun 30, 2021 Jun 30, 2020
Net income US$ in thousands 332,023 239,440 238,982 302,532 199,343
Revenue US$ in thousands 719,395 605,717 603,206 648,614 498,819
Net profit margin 46.15% 39.53% 39.62% 46.64% 39.96%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $332,023K ÷ $719,395K
= 46.15%

The net profit margin of Royal Gold Inc has shown varying trends over the years based on the provided data. In June 2020, the net profit margin stood at 39.96%, indicating that for every dollar of revenue generated, the company retained approximately 39.96 cents as profit.

Subsequently, there was an increase in profitability as of June 2021, with the net profit margin improving to 46.64%. This suggests that Royal Gold Inc became more efficient in converting its revenue into profits during that period.

However, there was a slight decline in profitability by December 2022, as the net profit margin decreased to 39.62%. This could indicate potential challenges or increased costs impacting the company's ability to maintain the previous levels of profitability.

The trend continued into December 2023, with a marginal decrease in the net profit margin to 39.53%. It is essential for the company to monitor and address any factors affecting profitability to sustain long-term financial health.

Finally, by December 2024, the net profit margin improved to 46.15%, showing a recovery in profitability. This positive trend could be a result of strategic actions taken by Royal Gold Inc to enhance operational efficiency or optimize its cost structure.

In conclusion, the net profit margin of Royal Gold Inc has demonstrated fluctuations over the years, highlighting the importance of continuous monitoring and management of profitability metrics to ensure sustainable financial performance.