Royal Gold Inc (RGLD)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 429,899 | 303,202 | 283,709 | 337,602 | 198,945 |
| Revenue | US$ in thousands | 719,395 | 605,717 | 603,206 | 648,614 | 498,819 |
| Operating profit margin | 59.76% | 50.06% | 47.03% | 52.05% | 39.88% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $429,899K ÷ $719,395K
= 59.76%
Royal Gold Inc's operating profit margin has exhibited a positive trend over the past few years, reflecting the company's ability to effectively manage its operating costs in relation to its revenue. The margin increased from 39.88% on June 30, 2020, to 59.76% on December 31, 2024, indicating a significant improvement in operational efficiency and profitability.
This steady improvement suggests that Royal Gold Inc has been successful in optimizing its operations and generating higher profits from its core business activities. A rising operating profit margin is generally viewed positively by investors as it signifies the company's ability to generate more earnings from each dollar of revenue.
Overall, the increasing trend in Royal Gold Inc's operating profit margin demonstrates the company's strong performance in controlling costs and enhancing operational effectiveness, which bodes well for its financial health and profitability.