Royal Gold Inc (RGLD)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 | 2,544,150 |
| Total stockholders’ equity | US$ in thousands | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 | 2,136,680 |
| Financial leverage ratio | 1.16 | 1.29 | 1.06 | 1.22 | 1.19 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,361,060K ÷ $2,888,220K
= 1.16
The financial leverage ratio of Royal Gold, Inc. has exhibited some fluctuations over the past five years, with values ranging from 1.06 to 1.29. The ratio peaked in December 2022 at 1.29 before declining to 1.16 by the end of 2023. This indicates that the company's reliance on debt to finance its operations and investments has decreased over the past year. However, the ratio remains above 1, suggesting that Royal Gold utilizes some level of debt to support its business activities. The trend in the financial leverage ratio should be monitored to assess the company's overall risk profile and financial health.