Royal Gold Inc (RGLD)
Interest coverage
| 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 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 120,345 |
| Interest expense (ttm) | US$ in thousands | 13,285 | 21,693 | 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 | 15,288 |
| Interest coverage | 24.30 | 13.49 | 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 | 7.87 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $322,860K ÷ $13,285K
= 24.30
The interest coverage ratio for Royal Gold Inc has shown some fluctuations over the years, ranging from as low as 7.87 to as high as 60.17. Generally, a higher interest coverage ratio indicates that a company is more capable of servicing its debt obligations.
Looking at the trend, the interest coverage ratio seems to have peaked in the most recent periods, showing an improving trend in the company's ability to cover its interest expenses. This suggests that Royal Gold Inc has been generating sufficient earnings to comfortably cover its interest payments.
However, it is important to note that while the interest coverage ratio has improved in recent periods, it has also experienced some fluctuations in the past. This indicates that the company's ability to cover its interest expenses may be subject to variability due to factors such as fluctuations in earnings or changes in interest rates.
In summary, although the interest coverage ratio for Royal Gold Inc has shown improvement in recent periods, investors and creditors should continue to monitor this ratio to ensure the company's financial health and ability to meet its debt obligations.