Royal Gold Inc (RGLD)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 303,202 | 283,709 | 337,602 | 198,945 | 140,707 |
| Total assets | US$ in thousands | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 | 2,544,150 |
| Operating ROA | 9.02% | 8.03% | 12.73% | 7.19% | 5.53% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $303,202K ÷ $3,361,060K
= 9.02%
To analyze Royal Gold, Inc.'s operating return on assets (operating ROA) over the past five periods, we can observe a positive trend in the company's efficiency in utilizing its assets to generate operating profits.
The operating ROA has been increasing steadily from 5.53% as of June 30, 2019, to 9.02% as of Dec 31, 2023. This indicates that the company has been able to enhance its operational performance and efficiency in generating profits relative to its total assets over time.
The highest operating ROA recorded was 11.45% as of June 30, 2021, which suggests a peak in the company's ability to generate profits from its assets during that period. However, the operating ROA slightly decreased to 8.15% as of Dec 31, 2022, before rising again to 9.02% by the end of Dec 31, 2023.
Overall, the increasing trend in Royal Gold, Inc.'s operating ROA signifies improvements in operational efficiency and profitability, reflecting positively on the company's ability to generate returns from its asset base across the analyzed periods.