Royal Gold Inc (RGLD)

Return on total capital

Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 322,860 292,673 303,203 296,967 293,179 289,188 283,709 297,662 321,855 325,007 321,797 337,602 296,211 277,435 253,376 198,945 195,093 181,272 149,703 120,345
Long-term debt US$ in thousands 0 146,187 245,967 320,750 395,529 496,817 571,572 446,327 — — 95,403 — 146,270 195,983 270,696 300,439 100,154 129,869 164,595 214,554
Total stockholders’ equity US$ in thousands 2,968,870 2,911,050 2,888,220 2,849,390 2,823,560 2,782,560 2,741,090 2,707,580 2,684,230 2,633,690 2,541,850 2,490,770 2,427,320 2,391,640 2,350,060 2,272,220 2,240,240 2,216,310 2,190,330 2,136,680
Return on total capital 10.87% 9.57% 9.67% 9.37% 9.11% 8.82% 8.56% 9.44% 11.99% 12.34% 12.20% 13.55% 11.51% 10.72% 9.67% 7.73% 8.34% 7.73% 6.36% 5.12%

June 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $322,860K ÷ ($0K + $2,968,870K)
= 10.87%

The return on total capital for Royal Gold Inc has shown fluctuations over the past few quarters. The ratio ranged from a low of 5.12% in June 2019 to a high of 13.55% in September 2021. The company's ability to generate returns from its total capital has generally been positive, with figures mostly above 8% in recent periods.

The return on total capital was relatively stable around the 9-10% range from December 2019 to March 2023, showing consistency in utilizing its capital effectively. There was a notable increase in return on total capital in the first half of 2022, peaking at 12.34% in March 2022.

Although there was a slight dip in the return on total capital in the most recent quarter (June 2024), the company still managed to maintain a double-digit return, which indicates efficient use of its capital resources. Overall, the trend highlights Royal Gold Inc's ability to generate reasonable returns relative to the total capital employed in its operations.