Royal Gold Inc (RGLD)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 303,202 | 283,709 | 337,602 | 198,945 | 140,707 |
| Long-term debt | US$ in thousands | 245,967 | 571,572 | — | 300,439 | 214,554 |
| Total stockholders’ equity | US$ in thousands | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 | 2,136,680 |
| Return on total capital | 9.67% | 8.56% | 13.55% | 7.73% | 5.98% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $303,202K ÷ ($245,967K + $2,888,220K)
= 9.67%
Based on the return on total capital data for Royal Gold, Inc. over the past five years, we can observe fluctuations in the company's performance.
In 2023, the return on total capital was 9.67%, indicating an increase from the prior year's 8.69%. This improvement suggests that the company was able to generate a higher return relative to its total capital investment.
Comparing the recent figures with those from 2019, we can see a notable growth trend in return on total capital, as it increased from 5.98% in 2019 to 9.67% in 2023. This upward trajectory signifies the company's ability to utilize its capital more efficiently and generate increased returns for its investors over the years.
Although there was a slight dip in 2020 to 7.79%, the subsequent recovery and improvement in subsequent years demonstrate the company's resilience and capacity to adapt to changing market conditions.
Overall, the trend in Royal Gold, Inc.'s return on total capital indicates a positive path, with fluctuations reflecting the company's ability to navigate challenges and capitalize on opportunities to enhance its overall capital efficiency and profitability.