Antero Resources Corp (AR)

The solvency ratios of Antero Resources Corp have shown a favorable trend over the past five years.

1. Debt-to-assets ratio: This ratio has decreased from 0.23 in 2020 to 0.11 in 2024, indicating that the company's level of debt relative to its total assets has been on a declining trend. A lower debt-to-assets ratio generally suggests a lower financial risk.

2. Debt-to-capital ratio: The debt-to-capital ratio has also shown a decreasing trend, from 0.34 in 2020 to 0.17 in 2024. This indicates that the proportion of the company's capital that is funded by debt has been decreasing, which is generally positive for solvency.

3. Debt-to-equity ratio: The debt-to-equity ratio has followed a similar pattern, declining from 0.52 in 2020 to 0.21 in 2024. A lower debt-to-equity ratio suggests that the company relies less on debt financing and has a stronger equity base, which is a positive indicator of solvency.

4. Financial leverage ratio: The financial leverage ratio has consistently decreased from 2.28 in 2020 to 1.85 in 2024. This indicates that the company has been reducing its reliance on debt to finance its operations, which generally lowers financial risk and improves solvency.

Overall, the decreasing trend in these solvency ratios suggests that Antero Resources Corp has improved its financial health and stability over the past five years. Investors and stakeholders may view this positively as it indicates a lower risk of default and a stronger financial position for the company.

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Coverage ratios

The interest coverage ratio of Antero Resources Corp has shown significant fluctuations over the years based on the provided data. As of December 31, 2020, the company had a concerning interest coverage ratio of -119.18, indicating that its earnings were insufficient to cover its interest expenses. However, by December 31, 2021, the ratio improved to 3.41, suggesting the company's ability to meet its interest obligations had strengthened.

In the following years, Antero Resources Corp's interest coverage ratio showed a substantial increase, reaching 643.48 as of December 31, 2022, and then moderating to 113.28 by December 31, 2023. This upward trend indicates a healthier financial position, with the company generating significantly more earnings relative to its interest expenses.

However, the interest coverage ratio declined substantially to 0.12 as of December 31, 2024, signaling a potential strain on the company's ability to cover its interest payments with its operating income. This decline may raise concerns about Antero Resources Corp's ability to service its debt obligations in the short term.

Overall, Antero Resources Corp's interest coverage ratio has displayed considerable variability, with improvements in certain periods but a notable deterioration towards the end of the analyzed period. It would be crucial for investors and stakeholders to monitor this ratio closely to assess the company's financial health and ability to meet its debt obligations.