Royal Gold Inc (RGLD)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,392,130 | 3,361,060 | 3,534,520 | 2,651,600 | 2,766,290 |
| Total stockholders’ equity | US$ in thousands | 3,118,960 | 2,888,220 | 2,741,090 | 2,490,770 | 2,272,220 |
| Financial leverage ratio | 1.09 | 1.16 | 1.29 | 1.06 | 1.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,392,130K ÷ $3,118,960K
= 1.09
The financial leverage ratio of Royal Gold Inc has exhibited some fluctuations over the past few years. As of June 30, 2020, the ratio stood at 1.22, indicating that the company had $1.22 in debt for every $1 of equity. By June 30, 2021, the ratio decreased to 1.06, suggesting a decrease in financial leverage. However, by December 31, 2022, the ratio increased to 1.29, signifying higher reliance on debt financing. Subsequently, by December 31, 2023, the ratio slightly improved to 1.16 and further decreased to 1.09 by December 31, 2024. Overall, these fluctuations in the financial leverage ratio may indicate changes in the company's capital structure and risk profile over the years.