RPC Inc (RES)
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 | 1.29 | 1.26 | 1.32 | 1.35 | 1.25 |
RPC Inc has consistently shown a strong solvency position as indicated by its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all been reported as 0.00 for the years 2020 to 2024, suggesting that the company has been operating with minimal debt relative to its assets, capital, and equity.
Moreover, the Financial Leverage ratio has ranged between 1.25 and 1.35 over the same period, indicating that the company has maintained a stable level of financial leverage, with its assets financed mostly through equity rather than debt.
Overall, RPC Inc's solvency ratios demonstrate a robust financial position with minimal reliance on debt for its operations, which can be seen as a positive indicator of financial stability and low financial risk.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 154.80 | 752.45 | 472.71 | 9.53 | -828.57 |
Interest coverage ratio measures the ability of a company to meet its interest obligations with its operating income. Looking at the historical trend for RPC Inc, the interest coverage ratio was negative at -828.57 on December 31, 2020, indicating difficulties in meeting interest payments. However, there has been a significant improvement in the company's ability to cover interest expenses over the following years, with ratios of 9.53 on December 31, 2021, 472.71 on December 31, 2022, 752.45 on December 31, 2023, and 154.80 on December 31, 2024. This positive trend suggests that RPC Inc has strengthened its financial position and is now generating sufficient operating income to comfortably cover its interest obligations.