Royal Gold Inc (RGLD)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 239,440 | 238,982 | 302,532 | 199,343 | 93,825 |
| Total assets | US$ in thousands | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 | 2,544,150 |
| ROA | 7.12% | 6.76% | 11.41% | 7.21% | 3.69% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $239,440K ÷ $3,361,060K
= 7.12%
Based on the data provided, Royal Gold, Inc.'s return on assets (ROA) has shown some fluctuations over the past five years. In 2023, the ROA was 7.12%, showing a slight improvement from the previous year's ROA of 6.76%. However, the ROA in 2023 is still lower than the peak ROA recorded in June 2021 at 11.41%.
The trend in Royal Gold's ROA indicates that the company has been able to generate a reasonable return on its assets over the years, with fluctuations likely influenced by factors such as gold prices, production costs, and market demand for precious metals.
Overall, the company's ROA performance demonstrates its ability to efficiently utilize its assets to generate profits, although there may be room for improvement to reach or exceed previous levels of performance observed in June 2021.