Gross Margin % is calculated as gross profit divided by its revenue. Royal Gold's Gross Profit for the
three
months ended in Dec. 2023 was $89.4 Mil. Royal Gold's Revenue for the
three
months ended in Dec. 2023 was $152.7 Mil. Therefore, Royal Gold's Gross Margin % for the quarter that ended in Dec. 2023 was 58.58%.
The historical rank and industry rank for Royal Gold's Gross Margin % or its related term are showing as below:
RGLD'
s Gross Margin % Range Over the Past 10 Years
Min: 39.95 Med: 49.82 Max: 56.62
Current: 56.62
During the past 13 years, the highestGross Margin % of Royal Gold was 56.62%. The lowest was 39.95%. And the median was 49.82%.
RGLD's Gross Margin % is ranked better than 86.81% of 705
companies
in the Metals & Mining industry
Industry Median: 19.63
vs RGLD: 56.62
Royal Gold had a gross margin of 58.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Royal Gold was 5.70% per year.
Royal Gold Gross Margin % Historical Data
The historical data trend for Royal Gold's Gross Margin % 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 Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % Distribution
For the Metals & Mining industry and Basic Materials sector, Royal Gold's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Royal Gold's Gross Margin % falls into.
* 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Royal Gold (NAS:RGLD) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Royal Gold had a gross margin of 58.58% for the quarter that ended in Dec. 2023 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Royal Gold Gross Margin % Related Terms
Thank you for viewing the detailed overview of Royal Gold's Gross Margin % 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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