Royal Gold Inc (RGLD)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 3,118,960 | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 |
| ROE | 10.65% | 8.29% | 8.72% | 12.15% | 8.77% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $332,023K ÷ $3,118,960K
= 10.65%
Royal Gold Inc's return on equity (ROE) has shown fluctuations over the years. As of June 30, 2020, the ROE was 8.77%, indicating that the company generated a return of 8.77% on the shareholders' equity during that period. This figure improved to 12.15% by June 30, 2021, suggesting a stronger performance in utilizing equity to generate profits.
However, the ROE dropped to 8.72% by December 31, 2022, indicating a decrease in the efficiency of generating profits from shareholders' equity. The trend continued to decline in the following year, with an ROE of 8.29% as of December 31, 2023.
The most recent data point, as of December 31, 2024, shows an improvement in ROE to 10.65%, indicating that the company was able to enhance its profitability relative to the equity invested.
Overall, the fluctuations in ROE suggest that Royal Gold Inc has experienced varying levels of success in generating profits from the shareholders' equity over the specified period. It is important for stakeholders to monitor ROE closely to assess the company's profitability and efficiency in utilizing equity.