Royal Gold Inc (RGLD)
Debt-to-equity 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-equity ratio | 0.09 | 0.21 | 0.00 | 0.13 | 0.10 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $245,967K ÷ $2,888,220K
= 0.09
The debt-to-equity ratio of Royal Gold, Inc. has shown fluctuations over the past five periods. As of December 31, 2023, the company's debt-to-equity ratio stands at 0.09, indicating a relatively low level of debt compared to equity. This represents a significant improvement compared to the fiscal year-end results of 2022, where the ratio was 0.21, suggesting a higher level of debt relative to equity.
The company's debt-to-equity ratio was notably at 0.00 as of June 30, 2021, indicating that there was no debt on the company's balance sheet, with equity fully supporting its operations. However, this trend changed in subsequent periods, as reflected in the ratios for June 30, 2020 (0.13) and June 30, 2019 (0.10), indicating moderate levels of debt compared to equity during those periods.
Overall, the downward trend in the debt-to-equity ratio from 2022 to 2023 suggests that Royal Gold has reduced its reliance on debt financing in favor of equity financing, potentially improving its financial stability and risk profile. However, further analysis would be required to understand the reasons behind these changes and the implications for the company's future financial performance.