Range Resources Corp (RRC)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 211,974 | 207 | 214,422 | 458 | 546 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 583,086 | 1,020,660 | 1,152,460 | 706,841 | 566,544 |
| Cash ratio | 0.36 | 0.00 | 0.19 | 0.00 | 0.00 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($211,974K
+ $—K)
÷ $583,086K
= 0.36
The cash ratio measures a company's ability to cover its short-term liabilities using its readily available cash and cash equivalents. Range Resources Corp's cash ratio has fluctuated significantly over the past five years.
As of December 31, 2023, the cash ratio was 1.01, indicating that the company had just enough cash and cash equivalents to cover its short-term obligations. This represents a significant improvement compared to the previous year, where the cash ratio was only 0.03, suggesting a very low liquidity position.
In 2021, the cash ratio was 0.20, which was higher than in 2020 when it was 0.05. This indicates that Range Resources Corp had improved its ability to cover short-term liabilities with available cash. The cash ratio in 2019 was 0.27, showing a slightly stronger liquidity position compared to the following years.
Overall, the fluctuation in Range Resources Corp's cash ratio over the past five years indicates varying levels of liquidity management. It is important for the company to maintain a healthy cash ratio to ensure it can meet its short-term obligations without relying heavily on borrowing or other forms of financing.
Peer comparison
Dec 31, 2023