Royal Gold Inc (RGLD)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,301,620 | 3,269,020 | 3,313,310 | 3,361,060 | 3,397,160 | 3,439,710 | 3,491,030 | 3,534,520 | 3,376,790 | 2,853,050 | 2,789,850 | 2,805,680 | 2,651,600 | 2,753,530 | 2,763,730 | 2,797,190 | 2,766,290 | 2,549,860 | 2,554,640 | 2,547,910 |
| Total stockholders’ equity | US$ in thousands | 3,038,640 | 2,968,870 | 2,911,050 | 2,888,220 | 2,849,390 | 2,823,560 | 2,782,560 | 2,741,090 | 2,707,580 | 2,684,230 | 2,633,690 | 2,541,850 | 2,490,770 | 2,427,320 | 2,391,640 | 2,350,060 | 2,272,220 | 2,240,240 | 2,216,310 | 2,190,330 |
| Financial leverage ratio | 1.09 | 1.10 | 1.14 | 1.16 | 1.19 | 1.22 | 1.25 | 1.29 | 1.25 | 1.06 | 1.06 | 1.10 | 1.06 | 1.13 | 1.16 | 1.19 | 1.22 | 1.14 | 1.15 | 1.16 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,301,620K ÷ $3,038,640K
= 1.09
The financial leverage ratio of Royal Gold Inc has shown fluctuations over the past few quarters. The ratio indicates the company's level of financial leverage, which is the extent to which it relies on debt to finance its operations.
From the data provided, we can see that the financial leverage ratio has been generally increasing over the past few quarters, with some slight fluctuations. The ratio was at 1.09 in September 2024 and has been steadily increasing to 1.16 by December 2023.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. This suggests that Royal Gold Inc relies more on debt financing compared to equity financing.
It is important to closely monitor the trend of the financial leverage ratio as a high level of financial leverage can increase the company's financial risk, especially in times of economic uncertainty or interest rate hikes. Investors and stakeholders should assess whether the company's increasing financial leverage is sustainable and if it aligns with the company's overall financial strategy and risk appetite.