Range Resources Corp (RRC)

Short-term

Turnover ratios

Range Resources Corp's inventory turnover ratio has fluctuated significantly over the years, indicating varying efficiency in managing its inventory levels. The company experienced a substantial increase in inventory turnover from September 2020 to March 2021, suggesting an improvement in inventory management efficiency during that period. However, there was a sharp decline in inventory turnover in the subsequent quarters, notably in March 2024, which may raise concerns about potential inventory management issues.

In terms of receivables turnover, Range Resources Corp has generally maintained a consistent level of efficiency in collecting outstanding receivables. The company saw a significant increase in receivables turnover from March 2023 to June 2023, indicating a more rapid collection of receivables during that period. However, there was a noticeable decrease in receivables turnover in December 2024, which may suggest challenges in collecting outstanding receivables efficiently.

Regarding payables turnover, Range Resources Corp has shown a relatively stable trend in managing its payables over the years. The company has maintained a consistent level of payables turnover, with minor fluctuations observed in the ratio. This demonstrates a consistent approach to managing payment obligations to suppliers and creditors.

In terms of working capital turnover, the data provided shows that there was no information available for the earlier periods, but there was a significant increase in the ratio in December 2023 and March 2024. This suggests that Range Resources Corp was able to generate more revenue per unit of working capital during those periods.

Overall, Range Resources Corp's activity ratios reflect varying levels of efficiency in inventory management, receivables collection, payables management, and utilization of working capital over the years. Monitoring these ratios can provide insight into the company's operational efficiency and effectiveness in managing its resources.

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Average number of days

Range Resources Corp's activity ratios provide insights into its efficiency in managing its inventory, collecting receivables, and managing payables.

The Days of Inventory on Hand (DOH) ratio shows the number of days it takes for the company to sell its current inventory. From March 31, 2020, to December 31, 2024, Range Resources Corp's DOH fluctuated significantly, ranging from 0.59 days to 241.42 days.

The Days of Sales Outstanding (DSO) ratio reveals how many days it takes for the company to collect payments from its customers. Range Resources Corp's DSO varied over the same period, with values ranging from 15.02 days to 68.21 days.

The Number of Days of Payables ratio indicates how many days it takes for the company to pay its suppliers. Range Resources Corp's payables days fluctuated between 9.48 days and 142.96 days.

Analyzing these ratios collectively can offer valuable insights into the company's overall operational efficiency and liquidity. A decreasing DOH, DSO, and increasing payables days could indicate improved efficiency and cash flow management, while increasing DOH, DSO, and decreasing payables days could signal potential issues in managing working capital effectively. Further trend analysis and benchmarking against industry peers would provide a more comprehensive understanding of Range Resources Corp's performance in terms of activity ratios.

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Long-term

Range Resources Corp experienced a significant increase in its Fixed Asset Turnover ratio from March 31, 2020, to December 31, 2024. The ratio started at 514.16 and showed fluctuating trends until June 30, 2022, after which it experienced a steady upward trajectory, reaching a peak of 2,468.82 on March 31, 2023. However, the ratio declined in the following periods, dropping to 980.56 by December 31, 2024.

In contrast, the Total Asset Turnover ratio displayed a more stable trend over the same period. Starting at 0.42 on March 31, 2020, the ratio decreased slightly by December 31, 2020. Subsequently, it hovered around 0.30 to 0.40 until June 30, 2024, with minor fluctuations. This ratio reflects the company's ability to generate sales relative to its total assets, showing a consistent level of efficiency in asset utilization.

Overall, the analysis of these long-term activity ratios indicates that Range Resources Corp improved its efficiency in utilizing fixed assets over time, as evidenced by the rising Fixed Asset Turnover ratio. However, the fluctuations in the Total Asset Turnover ratio suggest that the company may have experienced challenges in maximizing sales relative to its total assets during the period under review.