Royal Gold Inc (RGLD)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 3,392,130 | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 |
| Operating ROA | 12.67% | 9.02% | 8.03% | 12.73% | 7.19% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $429,899K ÷ $3,392,130K
= 12.67%
Royal Gold Inc's operating return on assets (operating ROA) has shown some fluctuations over the past few years. In June 2020, the operating ROA stood at 7.19%, reflecting the company's ability to generate operating income relative to its total assets. By June 2021, there was a significant improvement in the operating ROA to 12.73%, indicating increased efficiency in asset utilization.
However, by December 2022, the operating ROA dropped to 8.03%, signaling a slight decline in the company's operating performance. The trend reversed in the following years, with the operating ROA climbing to 9.02% by December 2023 and further to 12.67% by the end of December 2024.
Overall, Royal Gold Inc's operating ROA has exhibited variability but generally displayed an upward trend in recent years, suggesting improved operational efficiency and asset utilization, which is crucial for sustainable business performance.