Royal Gold Inc (RGLD)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 332,023 | 239,440 | 238,982 | 302,532 | 199,343 |
| Total assets | US$ in thousands | 3,392,130 | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 |
| ROA | 9.79% | 7.12% | 6.76% | 11.41% | 7.21% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $332,023K ÷ $3,392,130K
= 9.79%
Royal Gold Inc's Return on Assets (ROA) has shown fluctuations over the past few years. From June 30, 2020, to June 30, 2021, there was a significant increase in ROA from 7.21% to 11.41%, indicating improved efficiency in generating profits from its assets. However, by December 31, 2022, the ROA decreased to 6.76%, suggesting a decline in profitability relative to the assets employed.
Subsequently, there was a slight improvement in ROA to 7.12% by December 31, 2023, indicating a modest recovery in asset utilization efficiency. By the end of December 31, 2024, the ROA further improved to 9.79%, signaling enhanced profitability relative to the total assets.
Overall, Royal Gold Inc's ROA performance has shown variability, with notable fluctuations. It is crucial for stakeholders to closely monitor future financial performance to ensure sustained efficiency in asset utilization and profitability.