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RGLD (Royal Gold) Interest Coverage : 40.57 (As of Jun. 2024)


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What is Royal Gold Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Royal Gold's Operating Income for the three months ended in Jun. 2024 was $102.1 Mil. Royal Gold's Interest Expense for the three months ended in Jun. 2024 was $-2.5 Mil. Royal Gold's interest coverage for the quarter that ended in Jun. 2024 was 40.57. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Royal Gold's Interest Coverage or its related term are showing as below:

RGLD' s Interest Coverage Range Over the Past 10 Years
Min: 3.17   Med: 4.79   Max: 47.31
Current: 15.82


RGLD's Interest Coverage is ranked worse than
75.61% of 1320 companies
in the Metals & Mining industry
Industry Median: No Debt vs RGLD: 15.82

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Royal Gold Interest Coverage Historical Data

The historical data trend for Royal Gold's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Royal Gold Interest Coverage Chart

Royal Gold Annual Data
Trend Jun14 Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 4.75 20.41 47.31 16.77 9.82

Royal Gold Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.55 9.00 13.28 16.39 40.57

Competitive Comparison of Royal Gold's Interest Coverage

For the Gold subindustry, Royal Gold's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Royal Gold's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Royal Gold's Interest Coverage falls into.



Royal Gold Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Royal Gold's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Royal Gold's Interest Expense was $-30.9 Mil. Its Operating Income was $303.2 Mil. And its Long-Term Debt & Capital Lease Obligation was $246.0 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*303.202/-30.867
=9.82

Royal Gold's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the three months ended in Jun. 2024, Royal Gold's Interest Expense was $-2.5 Mil. Its Operating Income was $102.1 Mil. And its Long-Term Debt & Capital Lease Obligation was $0.0 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*102.083/-2.516
=40.57

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Royal Gold  (NAS:RGLD) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Royal Gold Interest Coverage Related Terms

Thank you for viewing the detailed overview of Royal Gold's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


Royal Gold Business Description

Traded in Other Exchanges
Address
1144 15th Street, Suite 2500, Denver, CO, USA, 80202
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.
Executives
Paul Libner officer: VP & General Counsel 845 BRAESHEATHER PL, HIGHLANDS RANCH CO 80216
Daniel Breeze officer: VP Corp Dev of RGLD Gold AG KIRCHBODENSTRASSE 16, Z, THALWIL V8 8800
Randy Shefman officer: VP & General Counsel 921 SOUTH HIGH STREET, DENVER CO 80209
Ronald J Vance director C/O ROYAL GOLD, 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Martin Raffield officer: Vice President, Operations P.O. BOX 1649, POLSON MT 59860
Mark Isto officer: Vice President Operations 1144 15TH STREET, SUITE 2500, DENVER CO 80202
William M. Hayes director 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Laura Gill officer: VP, Corp. Sec. & CCO 10499 EAST ABERDEEN AVE, ENGLEWOOD CO 80111
Fabiana Chubbs director 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Margaret Mccandless officer: Asst. GC, Corp Secretary & CCO C/O ROYAL GOLD, 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Tony A Jensen director, officer: President and CEO 620 E HEARTSTRONG STREET, SUPERIOR CO 80027
Bruce Christopher Kirchhoff officer: VP and General Counsel 1660 WYNKOOP, #1000, DENVER CO 80202
Sybil E Veenman director C/O ROYAL GOLD, INC., 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Jamie C Sokalsky director C/O ROYAL GOLD, 1144 15TH STREET, SUITE 2500, DENVER CO 80202
William Holmes Heissenbuttel officer: VP Corporate Development 1144 15TH STREET, SUITE 2500, DENVER CO 80202