Range Resources Corp (RRC)

Range Resources Corp's liquidity ratios have shown some fluctuations over the years.

1. Current Ratio:
- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, increased from 0.41 in 2020 to 1.49 in 2023, indicating an improvement in liquidity. However, it decreased to 0.57 in 2024, showing a decline in the company's short-term financial health.

2. Quick Ratio:
- The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, followed a similar trend as the current ratio. It increased from 0.36 in 2020 to 1.01 in 2023, reflecting a strong ability to meet short-term obligations. However, it decreased to 0.48 in 2024, suggesting a slight decrease in the company's ability to cover immediate liabilities without inventory.

3. Cash Ratio:
- The cash ratio, which indicates the company's ability to cover its current liabilities with its cash and cash equivalents, showed variability over the years. It was 0.00 in 2020 and 2022, but improved to 0.54 in 2023 before dropping to 0.24 in 2024. This indicates that the company had little to no cash on hand in 2020 and 2022, but made significant improvements in 2023 before declining in 2024.

Overall, while there have been fluctuations in Range Resources Corp's liquidity ratios, the company made improvements in certain years but experienced some declines in others. It is important for the company to closely monitor and manage its liquidity position to ensure it can meet its short-term obligations effectively.

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Additional liquidity measure

The cash conversion cycle for Range Resources Corp has exhibited significant fluctuations over the years. In December 2020, the company reported a negative cash conversion cycle of -1.45 days, indicating a rapid turnover of cash in its operations. This improved further in December 2021 and 2022, with the cash conversion cycle turning even more negative at -55.20 days and -56.62 days, respectively, suggesting efficient management of working capital and quick cash conversion.

However, there was a notable reversal in December 2023, where the cash conversion cycle surged to 196.24 days, signifying a prolonged period in converting resources into cash. This sharp increase may indicate challenges in liquidity management or delays in converting inventory and receivables into cash during that period.

Subsequently, in December 2024, the cash conversion cycle once again reflected improvement, albeit in the negative territory at -83.93 days. This suggests that the company was able to accelerate its cash conversion cycle compared to the previous year.

Overall, the analysis of Range Resources Corp's cash conversion cycle shows fluctuations in the efficiency of its working capital management over the years, with periods of both rapid cash turnover and challenges in converting resources into cash promptly. Monitoring and analyzing the cash conversion cycle can provide valuable insights into the company's operational efficiency and liquidity management strategies.