Royal Gold Inc (RGLD)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 425,636 | 281,448 | 271,908 | 339,399 | 195,689 |
| Revenue | US$ in thousands | 719,395 | 605,717 | 603,206 | 648,614 | 498,819 |
| Pretax margin | 59.17% | 46.47% | 45.08% | 52.33% | 39.23% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $425,636K ÷ $719,395K
= 59.17%
The pretax margin of Royal Gold Inc has shown a positive trend over the past five years, increasing from 39.23% as of June 30, 2020, to 59.17% as of December 31, 2024. This indicates that the company has been able to effectively control its expenses relative to its revenue, leading to a higher proportion of pre-tax profits in relation to its total revenue. The consistent growth in pretax margin reflects the company's operational efficiency and profitability improvements over the period under review. The most notable increase was observed between December 31, 2023, and December 31, 2024, where the pretax margin rose by 12.7 percentage points, highlighting a significant enhancement in the company's cost management or revenue generation strategies during that period. Overall, the upward trajectory of Royal Gold Inc's pretax margin suggests favorable financial performance and effective management of its resources.