Royal Gold Inc (RGLD)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 245,967 | 571,572 | — | 300,439 | 214,554 |
| Total assets | US$ in thousands | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 | 2,544,150 |
| Debt-to-assets ratio | 0.07 | 0.16 | 0.00 | 0.11 | 0.08 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $245,967K ÷ $3,361,060K
= 0.07
The debt-to-assets ratio of Royal Gold, Inc. has shown fluctuations over the past five reporting periods. As of December 31, 2023, the ratio stands at 0.07, indicating that only 7% of the company's assets are financed through debt. This represents a significant improvement compared to the ratio of 0.16 reported on December 31, 2022.
Royal Gold, Inc. reported a debt-to-assets ratio of 0.00 on June 30, 2021, suggesting the company had no debt financing its assets at that time. Subsequently, there was an increase to 0.11 as of June 30, 2020, before decreasing slightly to 0.08 on June 30, 2019.
The noticeable decline in the debt-to-assets ratio from 2022 to 2023 reflects a potentially stronger financial position, with less reliance on debt to fund its operations. This trend may indicate improved financial stability and lower financial risk for Royal Gold, Inc. Overall, the company's conservative approach to debt management is apparent in the decreasing trend of the debt-to-assets ratio over the years.