Royal Gold Inc (RGLD)
Interest coverage
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 376,144 | 322,860 | 292,673 | 303,203 | 296,967 | 293,179 | 289,188 | 283,709 | 297,662 | 321,855 | 325,007 | 321,797 | 337,602 | 296,211 | 277,435 | 253,376 | 198,945 | 195,093 | 181,272 | 149,703 |
Interest expense (ttm) | US$ in thousands | 14,330 | 20,408 | 26,300 | 30,868 | 30,928 | 32,457 | 25,447 | 17,170 | 13,018 | 5,349 | 5,771 | 6,451 | 6,418 | 7,947 | 8,215 | 8,854 | 9,813 | 21,527 | 19,739 | 17,822 |
Interest coverage | 26.25 | 15.82 | 11.13 | 9.82 | 9.60 | 9.03 | 11.36 | 16.52 | 22.87 | 60.17 | 56.32 | 49.88 | 52.60 | 37.27 | 33.77 | 28.62 | 20.27 | 9.06 | 9.18 | 8.40 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $376,144K ÷ $14,330K
= 26.25
The interest coverage ratio for Royal Gold Inc has been fluctuating over the past few quarters, indicating changes in the company's ability to cover its interest expenses. The trend shows an increasing interest coverage ratio from Dec 31, 2019, to Mar 31, 2022, with a peak at Mar 31, 2022. This indicates that the company's earnings were sufficiently higher than its interest expenses during this period.
However, there was a significant decline in the interest coverage ratio from Mar 31, 2022, to Dec 31, 2023, suggesting a potential strain on the company's ability to cover its interest payments. This trend continued into the first three quarters of 2024, with the interest coverage ratio remaining below the levels seen in the previous year.
The latest data as of Sep 30, 2024, shows an interest coverage ratio of 28.66, which has improved from the previous quarter but is still below the levels seen in the earlier periods of high coverage. This indicates that Royal Gold Inc may be experiencing better earnings to cover its interest expenses compared to the previous quarter but is not yet back to the levels seen in the more robust periods.
Overall, a fluctuating interest coverage ratio suggests that the company's ability to cover its interest expenses has varied over the periods analyzed, with recent data showing some improvement but still not back to previous levels of strong coverage.