Royal Gold has a Cash Ratio of 1.44. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Royal Gold's Cash Ratio or its related term are showing as below:
RGLD'
s Cash Ratio Range Over the Past 10 Years
Min: 1.44 Med: 3.95 Max: 30
Current: 1.44
During the past 13 years, Royal Gold's highest Cash Ratio was 30.00. The lowest was 1.44. And the median was 3.95.
RGLD's Cash Ratio is ranked better than 51.87% of 2599
companies
in the Metals & Mining industry
Industry Median: 1.27
vs RGLD: 1.44
Royal Gold Cash Ratio Historical Data
The historical data trend for Royal Gold's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Gold subindustry, Royal Gold's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Royal Gold's Cash Ratio Distribution in the Metals & Mining Industry
For the Metals & Mining industry and Basic Materials sector, Royal Gold's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Royal Gold's Cash Ratio falls into.
Royal Gold Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Royal Gold's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Royal Gold (NAS:RGLD) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Royal Gold Cash Ratio Related Terms
Thank you for viewing the detailed overview of Royal Gold's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Royal Gold Inc enquires and manages precious metal royalties and streams, with a focus on gold. The company operates by purchasing a percentage of the metal produced from a mineral property for an initial payment, without assuming responsibility of mining operations. Similarly, precious metal streams are purchase agreements with mine operators providing the right to purchase all or a portion of one or more metals produced from a mine, in exchange for an upfront deposit payment. Generally Royal Gold does not conduct any work on the properties in which it holds royalty and streaming assets. The company owns a portfolio of producing, development, evaluation, and exploration royalties and streams, and the majority of group revenue is generated from Canada, Mexico, Chile, and the United States.
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