Royal Gold Inc (RGLD)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 | 2,136,680 |
| Debt-to-capital ratio | 0.08 | 0.17 | 0.00 | 0.12 | 0.09 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $245,967K ÷ ($245,967K + $2,888,220K)
= 0.08
The debt-to-capital ratio of Royal Gold, Inc. has shown fluctuations over the past five periods.
As of December 31, 2023, the debt-to-capital ratio stood at 0.08, indicating that only 8% of the company's capital structure was funded by debt, with the remaining 92% financed by equity. This suggests a relatively low level of financial leverage and a conservative approach to capital structure.
Comparing this to the ratio of 0.17 as of December 31, 2022, we observe a significant decrease in the debt-to-capital ratio, indicating a reduction in the company's reliance on debt financing relative to its total capital. This could be a positive sign, as it may lower the company's financial risk and improve its financial flexibility.
The debt-to-capital ratio was at 0.00 as of June 30, 2021, indicating that the company had no debt in its capital structure at that time. This could suggest a period of debt-free operations or a strategic decision to operate without debt financing during that period.
On June 30, 2020, the ratio was at 0.12, indicating that 12% of the company's capital was debt-funded. This level of debt relative to capital remained relatively moderate, suggesting a balanced approach to capital structure.
Similarly, on June 30, 2019, the ratio was at 0.09, indicating a slight increase from the previous year but still within a reasonable range, reflecting a manageable level of debt relative to the company's capital base.
Overall, the trend in Royal Gold, Inc.'s debt-to-capital ratio reflects variations in the company's use of debt financing over the years, with the most recent ratio of 0.08 suggesting a conservative and sustainable capital structure.