Permian Resources Corporation (PR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.85 | 2.36 | 2.89 | 1.38 | 1.47 |
Permian Resources Corporation has demonstrated a consistently strong solvency position based on the solvency ratios provided. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been maintained at 0.00 throughout the years 2020 to 2024. This indicates that the company has no debt in relation to its assets, capital, or equity, suggesting a low financial risk and a healthy financial structure.
However, the Financial leverage ratio has shown some fluctuation over the years, ranging from 1.38 to 2.89. Despite the fluctuations, the financial leverage ratio has generally been below 3, which indicates that the company's reliance on debt financing is moderate and manageable.
Overall, the solvency ratios reflect a solid financial foundation for Permian Resources Corporation, as the absence of debt in relation to assets, capital, and equity coupled with a reasonable level of financial leverage suggests a stable and sustainable financial position.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 6.36 | 6.84 | 10.10 | 3.26 | -10.13 |
Permian Resources Corporation's interest coverage ratio has displayed significant fluctuations over the past five years. As of December 31, 2020, the interest coverage ratio was negative, indicating that the company's earnings were insufficient to cover its interest expenses. However, there has been a notable improvement in the following years. In particular, by December 31, 2022, the interest coverage ratio had increased to 10.10, suggesting a substantial enhancement in the company's ability to meet its interest obligations from its operating income.
Although the ratio dipped slightly in the subsequent years, it remained above 3, indicating that Permian Resources Corporation continued to generate enough earnings to cover its interest costs. Overall, the trend in the interest coverage ratio reflects varying levels of financial stability and efficiency in managing debt obligations over the years, with the company showing progress in enhancing its ability to service its debt through operating profits. Further monitoring of this ratio will be important to assess Permian Resources Corporation's ongoing financial health and debt repayment capacity.