Royal Gold Inc (RGLD)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.04 | 0.07 | 0.09 | 0.11 | 0.14 | 0.16 | 0.13 | 0.00 | 0.00 | 0.03 | 0.00 | 0.05 | 0.07 | 0.10 | 0.11 | 0.04 | 0.05 | 0.06 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.05 | 0.08 | 0.10 | 0.12 | 0.15 | 0.17 | 0.14 | 0.00 | 0.00 | 0.04 | 0.00 | 0.06 | 0.08 | 0.10 | 0.12 | 0.04 | 0.06 | 0.07 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.05 | 0.09 | 0.11 | 0.14 | 0.18 | 0.21 | 0.16 | 0.00 | 0.00 | 0.04 | 0.00 | 0.06 | 0.08 | 0.12 | 0.13 | 0.04 | 0.06 | 0.08 |
| 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 |
Royal Gold Inc has consistently maintained a low level of debt in relation to its assets, capital, and equity over the past several quarters. The debt-to-assets ratio has remained relatively stable, ranging from 0.00% to 0.16% during the period analyzed. Similarly, the debt-to-capital and debt-to-equity ratios have stayed in a narrow range between 0.00% and 0.21%, indicating the company's conservative capital structure with minimal reliance on debt.
The financial leverage ratio, which measures the company's use of debt to finance its operations, has also remained consistent around 1.09 to 1.29 over the same period. This suggests that Royal Gold Inc has been efficient in managing its leverage and has not taken on excessive financial risk.
Overall, based on the solvency ratios analyzed, Royal Gold Inc appears to have a strong financial position with a prudent level of debt utilization, indicating a solid ability to meet its financial obligations and withstand economic uncertainties.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratio of Royal Gold Inc has exhibited fluctuations over the observed periods. The ratio has generally been above 1, indicating that the company has generated sufficient operating income to cover its interest expenses.
In the most recent period, as of September 30, 2024, the interest coverage ratio stands at 28.66, reflecting a significant improvement from the previous quarter and indicating a strong ability to meet interest obligations. This improvement may be attributed to increased operating income or lower interest expenses.
Looking back over the historical data, the interest coverage ratio has shown some volatility, reaching its peak at 60.17 in June 2022, which may have been a result of exceptionally high operating income relative to interest payments at that time. However, it is noteworthy that the ratio has also fallen to single-digit levels in certain periods, such as in the fourth quarter of 2019.
Overall, while the interest coverage ratio of Royal Gold Inc has demonstrated variability, the recent increase suggests a positive trend in the company's ability to cover its interest expenses from operating income. Investors and stakeholders may continue to monitor this ratio to assess the company's financial health and debt repayment capacity.