Permian Resources Corporation (PR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| 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 | 2.36 | 2.89 | 1.38 | 1.47 | 1.44 |
Permian Resources Corp's solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has been relatively stable over the years, ranging from 0.22 to 0.28, with the latest figure at 0.26 as of December 31, 2023. This ratio suggests that around 26% of the company's assets are financed by debt.
The debt-to-capital ratio has shown some fluctuations, with the highest value of 0.42 in 2022 and the lowest at 0.23 in 2021. As of 2023, the ratio stands at 0.38, indicating that debt accounts for about 38% of Permian Resources Corp's total capital structure.
The debt-to-equity ratio reflects the proportion of debt to equity financing in the company's capital structure. Permian Resources Corp has seen a decreasing trend in this ratio over the years, from 0.73 in 2022 to 0.61 in 2023. This suggests that the company relies less on debt and more on equity for financing its operations.
The financial leverage ratio, which measures the extent of financial leverage used by the company, has also decreased over the years, from 2.89 in 2022 to 2.36 in 2023. This indicates that Permian Resources Corp has reduced its reliance on debt to support its assets and operations.
Overall, Permian Resources Corp's solvency ratios show a stable and improving solvency position, with a moderate level of debt relative to assets and capital while showing a decreasing trend in leveraging debt. This indicates a prudent approach to managing long-term financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.57 | 7.64 | 3.26 | -10.10 | 1.39 |
Permian Resources Corp's interest coverage has shown fluctuations over the past five years. In 2023, the interest coverage ratio was 6.93, indicating that the company earned nearly 7 times its interest expenses in that year. This ratio decreased from the previous year's 11.40, suggesting a decline in the company's ability to cover interest payments with its operating income.
Looking back to 2021, the interest coverage ratio was 5.92, showing a relatively stable performance compared to 2023 but lower than the peak reached in 2022. In 2020, the interest coverage ratio was negative at -1.29, indicating that the company's operating income was insufficient to cover its interest expenses during that period. However, the company showed improvement in 2019 with an interest coverage ratio of 2.28, indicating a modest ability to cover interest payments.
Overall, the trend in Permian Resources Corp's interest coverage ratio has been somewhat volatile, with fluctuations indicating varying levels of financial risk and stability over the years. Investors and creditors may want to monitor this ratio closely to assess the company's ability to meet its interest obligations in the future.