Royal Gold Inc (RGLD)

Return on total capital

		Dec 31, 2024	Sep 30, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	429,898	376,144	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
Long-term debt	US$ in thousands	0	0	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
Total stockholders’ equity	US$ in thousands	3,118,960	3,038,640	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
Return on total capital		13.78%	12.38%	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%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $429,898K ÷ ($0K + $3,118,960K)
= 13.78%

Royal Gold Inc's return on total capital has shown a fluctuating trend over the years, starting at 7.73% on December 31, 2019, and gradually increasing to 13.78% on December 31, 2024. The metric experienced some ups and downs along the way, with occasional peaks and dips. Notably, there was a significant rise in return on total capital from June 30, 2021, to December 31, 2024, indicating improving efficiency in generating profits relative to the total capital employed. However, there were also periods of slight decline, such as in June 30, 2022, and December 31, 2022. Overall, the upward trend in return on total capital reflects positively on Royal Gold Inc's financial performance and capital management effectiveness during the period under review.