RPC Inc (RES)
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 | 1.26 | 1.32 | 1.35 | 1.25 | 1.27 |
Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at RPC, Inc.'s solvency ratios over the past five years, it is evident that the company has maintained a strong financial position with consistently low debt levels relative to its assets, capital, and equity.
The debt-to-assets ratio, which indicates the proportion of a company's assets financed by debt, has been consistently very low at 0.00 over the past five years. This suggests that RPC, Inc. relies minimally on debt to finance its operations and investments.
Similarly, the debt-to-capital and debt-to-equity ratios have also remained at 0.00 during the same period. This further reinforces the company's conservative approach to leverage, as it indicates that almost all of RPC, Inc.'s capital and equity are sourced from sources other than debt.
Furthermore, the financial leverage ratio, which reflects the degree of financial risk carried by the company, has shown a slight decrease from 1.32 in 2022 to 1.26 in 2023. This ratio indicates that RPC, Inc. recently decreased its reliance on debt financing relative to its equity. Overall, the company's financial leverage has been relatively stable over the past five years between 1.25 and 1.35, demonstrating a balanced capital structure.
In summary, RPC, Inc. exhibits a strong solvency position with minimal debt levels and a prudent approach to financial leverage, which bodes well for its long-term financial stability and ability to weather economic uncertainties.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 752.45 | 472.71 | 9.53 | -828.57 | -337.63 |
Based on the data provided, the interest coverage ratio for RPC, Inc. was not available for the years 2023, 2022, 2020, and 2019. However, we can infer that in 2021, the company had an interest coverage ratio of 2.89.
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A ratio of 2.89 indicates that RPC, Inc. earned 2.89 times the amount of interest owed, suggesting a moderate ability to cover its interest expenses.
It is essential to note that without data for other years, it is challenging to assess the trend in the company's interest coverage ratio over time. Monitoring this ratio in conjunction with other financial metrics can provide a more comprehensive understanding of RPC, Inc.'s overall financial health and risk management.