Royal Gold Inc (RGLD)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.07 | 0.16 | 0.00 | 0.11 | 0.08 |
| Debt-to-capital ratio | 0.08 | 0.17 | 0.00 | 0.12 | 0.09 |
| Debt-to-equity ratio | 0.09 | 0.21 | 0.00 | 0.13 | 0.10 |
| Financial leverage ratio | 1.16 | 1.29 | 1.06 | 1.22 | 1.19 |
Royal Gold, Inc.'s solvency ratios indicate its ability to meet its financial obligations and manage its debt levels effectively. The company's debt-to-assets ratio has been relatively stable over the years, decreasing from 0.16 in 2022 to 0.07 in 2023. This suggests that Royal Gold has a low proportion of debt relative to its total assets, indicating a strong financial position.
Similarly, the debt-to-capital ratio has also shown improvement, declining from 0.17 in 2022 to 0.08 in 2023. This implies that the company relies less on debt financing to fund its operations and investments, which can reduce financial risk and enhance stability.
Moreover, the debt-to-equity ratio has decreased from 0.21 in 2022 to 0.09 in 2023, indicating that Royal Gold has a lower level of debt compared to its equity. This suggests a healthy balance between debt and equity financing, which is important for long-term financial sustainability.
The financial leverage ratio, which measures the company's reliance on debt to finance its assets, has also shown improvement, decreasing from 1.29 in 2022 to 1.16 in 2023. This indicates that Royal Gold has been able to decrease its financial leverage over the years, which can improve its financial flexibility and reduce the risk of default.
Overall, Royal Gold, Inc. appears to have a strong solvency position based on its improving solvency ratios, reflecting effective debt management and solid financial health.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 9.82 | 16.52 | 294.08 | 175.13 | 9.20 |
I'm sorry, but without specific numerical values for the interest coverage ratio for Royal Gold, Inc. in each year, I am unable to provide a detailed and comprehensive analysis. The interest coverage ratio is a key financial metric used to evaluate a company's ability to cover its interest expenses with its operating income. To conduct a thorough analysis, we would need the actual values for the interest coverage ratio for each period listed. If you are able to provide this data, I'd be happy to assist you further in interpreting the company's interest coverage over time.