Royal Gold Inc (RGLD)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 65.50% | 62.47% | 59.39% | 57.04% | 56.69% | 55.28% | 54.92% | 54.09% | 53.56% | 53.86% | 54.49% | 54.93% | 54.43% | 51.25% | 48.66% | 46.55% | 45.39% | 47.32% | 46.86% | 46.94% |
| Operating profit margin | 59.76% | 56.18% | 52.56% | 50.10% | 50.06% | 48.21% | 48.15% | 47.31% | 47.03% | 48.43% | 49.42% | 50.20% | 50.01% | 51.96% | 49.23% | 46.58% | 45.18% | 39.88% | 39.45% | 39.76% |
| Pretax margin | 59.17% | 55.01% | 50.57% | 47.22% | 46.47% | 44.52% | 44.50% | 44.28% | 45.08% | 47.04% | 49.08% | 50.37% | 49.90% | 52.23% | 50.07% | 46.48% | 45.17% | 39.23% | 36.24% | 36.36% |
| Net profit margin | 46.15% | 42.93% | 39.15% | 38.12% | 39.53% | 37.83% | 37.69% | 38.80% | 39.62% | 41.13% | 44.32% | 41.95% | 41.31% | 46.56% | 44.85% | 42.72% | 42.05% | 39.96% | 35.75% | 35.69% |
Based on the provided data, I have analyzed Royal Gold Inc's profitability ratios over the period from December 31, 2019, to December 31, 2024.
1. Gross Profit Margin: Royal Gold's gross profit margin has shown a consistent increase from 46.94% in December 2019 to 65.50% in December 2024. This indicates that the company has been able to control its production costs and generate higher profits from its core operations.
2. Operating Profit Margin: The operating profit margin also displays an upward trend, starting at 39.76% in December 2019 and reaching 59.76% in December 2024. This suggests that Royal Gold has been efficient in managing its operating expenses and improving its operational profitability over time.
3. Pretax Margin: Royal Gold's pretax margin has demonstrated a significant growth trajectory, escalating from 36.36% in December 2019 to 59.17% in December 2024. This signifies the company's ability to enhance its pre-tax earnings relative to its total revenue.
4. Net Profit Margin: The net profit margin experienced fluctuations but generally trended upwards, starting at 35.69% in December 2019 and ending at 46.15% in December 2024. This indicates that Royal Gold has been effective in increasing its bottom-line profitability after accounting for all expenses and taxes.
Overall, Royal Gold Inc's profitability ratios have shown positive trends, reflecting the company's ability to improve its margins and generate higher profits over the analyzed period.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 9.79% | 8.70% | 7.36% | 6.72% | 7.12% | 6.86% | 6.67% | 6.79% | 6.76% | 7.49% | 10.12% | 9.73% | 9.47% | 11.41% | 9.80% | 9.20% | 8.43% | 7.21% | 6.93% | 6.54% |
| Return on total capital | 13.78% | 12.38% | 10.87% | 9.57% | 9.67% | 9.37% | 9.11% | 8.82% | 8.56% | 9.44% | 11.99% | 12.34% | 12.20% | 13.55% | 11.51% | 10.72% | 9.67% | 7.73% | 8.34% | 7.73% |
| Return on equity (ROE) | 10.65% | 9.46% | 8.10% | 7.65% | 8.29% | 8.18% | 8.13% | 8.52% | 8.72% | 9.34% | 10.75% | 10.31% | 10.46% | 12.15% | 11.12% | 10.64% | 10.04% | 8.77% | 7.89% | 7.54% |
Royal Gold Inc's profitability ratios show a positive trend over the timeframe provided. The operating return on assets (Operating ROA) increased from 7.28% as of December 31, 2019, to a peak of 12.67% by December 31, 2024, reflecting efficient operation management in generating profits from its assets.
Similarly, the return on assets (ROA) also exhibited growth, starting at 6.54% on December 31, 2019, and reaching 9.79% by December 31, 2024. This indicates the company's ability to generate more earnings relative to its total assets over the years.
Furthermore, the return on total capital trended positively, indicating the company's effective use of both debt and equity funding to generate returns. The ratio increased from 7.73% on December 31, 2019, to 13.78% on December 31, 2024, showing an improvement in utilizing the total capital invested in the business.
Additionally, the return on equity (ROE) also showed an increasing trend, rising from 7.54% on December 31, 2019, to 10.65% by December 31, 2024. This suggests an enhancement in shareholder value as the company generates higher returns on the equity investments made in the business.
Overall, Royal Gold Inc demonstrated consistent improvement in profitability ratios, indicating efficient management of assets and capital, leading to increased profitability and value creation for both the company and its shareholders.