Royal Gold Inc (RGLD)
Return on total capital
| 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 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 149,703 |
| Long-term debt | US$ in thousands | 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 | 164,595 |
| Total stockholders’ equity | US$ in thousands | 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 | 2,190,330 |
| Return on total capital | 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% | 6.36% |
September 30, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $376,144K ÷ ($0K + $3,038,640K)
= 12.38%
The return on total capital of Royal Gold Inc has shown some fluctuations over the past few quarters. In the most recent quarter, the return on total capital was 12.38%, which is an increase from the previous quarter's 10.87%. This indicates an improvement in the company's ability to generate returns from its total capital.
Looking further back, the return on total capital has generally been trending upwards since the end of 2021, with some minor fluctuations along the way. This suggests that Royal Gold Inc has been effectively utilizing its capital to generate returns for its investors.
Overall, the average return on total capital for Royal Gold Inc over the past few quarters is around 10%, indicating that the company has been efficiently deploying its capital to generate returns for its stakeholders. Monitoring this ratio over time can provide insights into the company's capital efficiency and performance.