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RGLD (Royal Gold) Degree of Operating Leverage : 1.92 (As of Mar. 2025)


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What is Royal Gold Degree of Operating Leverage?

Degree of Operating Leverage (DOL) measures the percentage change in EBIT for a unit change in Revenue. Royal Gold's Degree of Operating Leverage for the quarter that ended in Mar. 2025 was 1.92. The higher Degree of Operating Leverage, the higher operating risk the company will take.

The industry rank for Royal Gold's Degree of Operating Leverage or its related term are showing as below:

RGLD's Degree of Operating Leverage is ranked worse than
61.79% of 725 companies
in the Metals & Mining industry
Industry Median: 0.83 vs RGLD: 1.92

Royal Gold Degree of Operating Leverage Historical Data

The historical data trend for Royal Gold's Degree of Operating Leverage 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.

* Premium members only.

Royal Gold Degree of Operating Leverage Chart

Royal Gold Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Dec22 Dec23 Dec24
Degree of Operating Leverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.71 3.02 1.71 19.02 2.09

Royal Gold Quarterly Data
Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Degree of Operating Leverage 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 -0.45 10.10 2.90 2.09 1.92

Competitive Comparison of Royal Gold's Degree of Operating Leverage

For the Gold subindustry, Royal Gold's Degree of Operating Leverage, along with its competitors' market caps and Degree of Operating Leverage 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 Degree of Operating Leverage Distribution in the Metals & Mining Industry

For the Metals & Mining industry and Basic Materials sector, Royal Gold's Degree of Operating Leverage distribution charts can be found below:

* The bar in red indicates where Royal Gold's Degree of Operating Leverage falls into.


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Royal Gold Degree of Operating Leverage Calculation

Royal Gold's Degree of Operating Leverage for the quarter that ended in Mar. 2025 is calculated as:

Degree of Operating Leverage=% Change in EBIT**/% Change in Revenue
=( 482.015 (Mar. 2025) / 302.84 (Mar. 2024) - 1 )/( 763.929 (Mar. 2025) / 584.227 (Mar. 2024) - 1 )
=0.5916/0.3076
=1.92***

* 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.

** TTM data of EBIT and Revenue was used to calculate Degree of Operating Leverage.
*** Please be aware that the Degree of Operating Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.


Royal Gold  (NAS:RGLD) Degree of Operating Leverage Explanation

Degree of Operating Leverage (DOL) is a leverage ratio that measures the sensitivity of a company’s operting income, also referred to as Earnings Before Interest and Taxes (EBIT), to fluctuations in its Revenue. DOL is a method used to quantify a company’s operating risk. This risk is related to the company's structure of variable costs and fixed costs. Since the fixed costs do not allow the company to adjust the operating costs, the operating risk rises with a higher fixed-to-variable costs proportion.

A high Degree of Operating Leverage indicates that the company’s fixed costs exceed its variable costs. By increasing the sales, the company can earn more profits. In addition, the company must be able to maintain relatively high sales to cover all fixed costs.

Be Aware

The use of operating leverage varies across different industries and business sectors, and the application of Degree of Operating Leverage (DOL) should be adjusted accordingly.


Royal Gold Degree of Operating Leverage Related Terms

Thank you for viewing the detailed overview of Royal Gold's Degree of Operating Leverage 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 purchases a percentage of the metal produced from a mineral property for an initial payment without assuming responsibility for 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 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
Randy Shefman officer: VP & General Counsel 921 SOUTH HIGH STREET, DENVER CO 80209
Daniel Breeze officer: VP Corp Dev of RGLD Gold AG KIRCHBODENSTRASSE 16, Z, THALWIL V8 8800
William Holmes Heissenbuttel officer: VP Corporate Development 1144 15TH STREET, SUITE 2500, DENVER CO 80202
Paul Libner officer: VP & General Counsel 845 BRAESHEATHER PL, HIGHLANDS RANCH CO 80216
William M. Hayes director 1144 15TH STREET, SUITE 2500, DENVER CO 80202
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
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