Royal Gold Inc (RGLD)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 429,898 | 376,144 | 322,860 | 292,673 | 303,203 | 296,967 | 293,179 | 289,188 | 283,709 | 297,662 | 321,855 | 325,007 | 321,797 | 337,602 | 296,211 | 277,435 | 253,376 | 198,945 | 195,093 | 186,013 |
| Total assets | US$ in thousands | 3,392,130 | 3,301,620 | 3,269,020 | 3,313,310 | 3,361,060 | 3,397,160 | 3,439,710 | 3,491,030 | 3,534,520 | 3,376,790 | 2,853,050 | 2,789,850 | 2,805,680 | 2,651,600 | 2,753,530 | 2,763,730 | 2,797,190 | 2,766,290 | 2,549,860 | 2,554,640 |
| Operating ROA | 12.67% | 11.39% | 9.88% | 8.83% | 9.02% | 8.74% | 8.52% | 8.28% | 8.03% | 8.81% | 11.28% | 11.65% | 11.47% | 12.73% | 10.76% | 10.04% | 9.06% | 7.19% | 7.65% | 7.28% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $429,898K ÷ $3,392,130K
= 12.67%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operational activities relative to its total assets. For Royal Gold Inc, the Operating ROA has shown fluctuations over the past five years, ranging from 7.28% in December 2019 to 12.67% in December 2024.
The trend indicates that Royal Gold Inc has generally been able to improve its efficiency in generating profits from its assets over the years, with some fluctuations along the way. Particularly notable is the significant increase in Operating ROA from June 2021 to December 2024, suggesting improved operational performance and asset utilization during that period.
However, there were some slight declines in the Operating ROA in the first half of 2022 and 2023, which could indicate temporary challenges in profitability or asset management during those specific time frames. It is important for investors and stakeholders to monitor these ratios closely to assess the company's efficiency and profitability in utilizing its assets effectively.
In conclusion, Royal Gold Inc has demonstrated a relatively positive trend in its Operating ROA over the past five years, indicating an improvement in operational efficiency and profitability. It is essential for the company to continue monitoring and optimizing its asset utilization to sustain and potentially enhance its returns in the future.