Range Resources Corp (RRC)

Short-term

Turnover ratios

Based on the provided data, we can analyze the activity ratios of Range Resources Corp.

1. Receivables Turnover:
- The receivables turnover ratio measures how efficiently a company collects payments from its customers. A higher ratio indicates a more efficient collection process.
- In this case, the receivables turnover has been improving over the years, increasing from 5.85 in 2021 to 11.94 in 2023. This suggests that Range Resources Corp is collecting payments from customers at a faster rate in recent years.

2. Payables Turnover:
- The payables turnover ratio calculates how efficiently a company pays its suppliers. A higher ratio indicates that the company is paying its bills more quickly.
- The data shows a payables turnover of 0.00 for all years, indicating that there is no information available on how effectively Range Resources Corp pays its suppliers.

3. Inventory Turnover:
- Unfortunately, there is no data provided for the inventory turnover ratio, which measures how efficiently a company manages its inventory levels. Without this information, we can't assess Range Resources Corp's inventory management effectiveness.

4. Working Capital Turnover:
- The working capital turnover ratio shows how well a company utilizes its working capital to generate sales revenue. A higher ratio suggests effective utilization of working capital.
- Range Resources Corp's working capital turnover of 11.76 indicates that for each dollar of working capital invested, the company generates $11.76 in revenue. This high ratio implies that the company is effectively using its working capital to drive sales.

Overall, based on the available data, Range Resources Corp appears to be efficiently managing its receivables and working capital. However, the lack of information on inventory and payables turnover limits a comprehensive analysis of the company's overall activity ratios.

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Average number of days

Days of inventory on hand (DOH) for Range Resources Corp is not provided in the data. However, Days of Sales Outstanding (DSO) has shown a decreasing trend from 62.44 days in 2021 to 30.58 days in 2023. This indicates that the company is collecting receivables more efficiently, converting sales into cash quicker. A lower DSO is generally favorable as it signifies better liquidity and cash flow management.

The number of days of payables is also not available in the data provided, so it is not possible to analyze the company's payment practices and liquidity from this perspective.

In summary, based on the available information, Range Resources Corp has shown improvement in managing its receivables over the years, but additional data on inventory and payables would provide a more comprehensive analysis of the company's activity ratios.

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Long-term

Range Resources Corp's long-term activity ratios reflect the efficiency with which the company utilizes its fixed assets and total assets to generate sales revenue.

The fixed asset turnover ratio has shown fluctuations over the past five years, ranging from 0.35 to 0.70. A decreasing trend was observed from 2020 to 2022, indicating a potential decrease in the company's ability to generate sales from its fixed assets. However, this ratio improved in 2023, suggesting a better utilization of fixed assets to generate revenue during that period.

Similarly, the total asset turnover ratio also exhibited variations, fluctuating between 0.32 and 0.63. This ratio signifies how efficiently the company generates sales revenue from its total assets. The trend for this ratio also showed a decline from 2020 to 2022, indicating a potential decrease in overall asset efficiency. However, the ratio improved in 2023, signifying enhanced efficiency in generating sales relative to total assets during that year.

Overall, the company's long-term activity ratios suggest a mixed performance in utilizing both fixed and total assets to generate sales revenue over the past five years. Management should continue monitoring these ratios to ensure efficient utilization of assets in driving revenue growth.