Royal Gold Inc (RGLD)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 429,899 | 303,202 | 283,709 | 337,602 | 198,945 |
| Long-term debt | US$ in thousands | 0 | 245,967 | 571,572 | — | 300,439 |
| Total stockholders’ equity | US$ in thousands | 3,118,960 | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 |
| Return on total capital | 13.78% | 9.67% | 8.56% | 13.55% | 7.73% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $429,899K ÷ ($0K + $3,118,960K)
= 13.78%
The return on total capital for Royal Gold Inc has shown fluctuations over the years based on the provided data. On June 30, 2020, the return on total capital was 7.73%, which increased to 13.55% by June 30, 2021, indicating improved capital efficiency. However, by December 31, 2022, the return decreased to 8.56% before experiencing a slight increase to 9.67% by December 31, 2023. The most significant increase was seen by the end of December 31, 2024, with the return on total capital reaching 13.78%.
Overall, the trend in the return on total capital for Royal Gold Inc reflects varying levels of capital utilization efficiency over the years, with notable improvements in certain periods. This metric is essential for assessing how effectively the company is generating returns from its total capital employed. It is important for investors and stakeholders to monitor this ratio to gauge the company's ability to generate profits relative to the total capital invested.