Royal Gold Inc (RGLD)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 281,448 | 271,908 | 339,399 | 195,689 | 111,323 |
| Revenue | US$ in thousands | 605,717 | 603,206 | 648,614 | 498,819 | 423,056 |
| Pretax margin | 46.47% | 45.08% | 52.33% | 39.23% | 26.31% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $281,448K ÷ $605,717K
= 46.47%
The pretax margin of Royal Gold, Inc. has shown a positive trend over the past five years, increasing from 25.19% in June 2019 to 46.58% in December 2023. This indicates that the company has been able to effectively control its operating expenses in relation to its revenue generation. The significant improvement in pretax margin from June 2019 to December 2023 suggests enhanced operational efficiency and cost management, leading to a higher level of profitability before accounting for taxes. Furthermore, the fluctuations in pretax margin from year to year demonstrate the company's ability to adapt to changing market conditions and optimize its financial performance. Overall, the upward trajectory in Royal Gold's pretax margin reflects a positive trend in the company's financial health and operational effectiveness.