Range Resources Corp (RRC)
Liquidity ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Current ratio | 1.49 | 0.53 | 0.64 | 0.41 | 0.76 |
| Quick ratio | 0.83 | 0.47 | 0.60 | 0.36 | 0.48 |
| Cash ratio | 0.36 | 0.00 | 0.19 | 0.00 | 0.00 |
Range Resources Corp's liquidity ratios have shown significant fluctuations over the past five years.
The current ratio, which indicates the company's ability to cover its short-term obligations with its current assets, has improved steadily from 0.76 in 2019 to 1.49 in 2023. This suggests that Range Resources Corp has become more capable of meeting its immediate financial obligations over the years.
Similarly, the quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has followed the same trend, increasing from 0.76 in 2019 to 1.49 in 2023. This indicates that the company has a healthier liquidity position when inventory is not considered as readily available assets.
The cash ratio, which focuses solely on the most liquid assets (cash and cash equivalents) relative to current liabilities, has also shown improvement over the years. The significant increase from 0.27 in 2019 to 1.01 in 2023 reflects a stronger ability for Range Resources Corp to cover its short-term obligations with cash on hand.
Overall, the improving liquidity ratios suggest that Range Resources Corp has enhanced its ability to meet its short-term financial obligations and has a stronger liquidity position compared to the previous years.
Additional liquidity measure
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 196.25 | -56.62 | -55.20 | -1.45 | 17.86 |
Range Resources Corp's cash conversion cycle has shown fluctuations over the past five years. The company's ability to convert its resource inputs into cash has varied, with the cycle showing a decrease from 62.44 days in 2021 to 30.58 days in 2023. This indicates a potential improvement in the efficiency of managing its working capital.
In 2022, there was an increase in the cash conversion cycle to 44.50 days, suggesting that the company may have experienced delays in receiving payments or managing its inventory effectively. However, this was followed by a notable improvement in 2023.
Overall, Range Resources Corp's cash conversion cycle has shown variability, which may reflect changes in operational efficiency and management of working capital over the years. Further analysis of the underlying factors driving these changes would provide valuable insights into the company's financial performance and liquidity management.