Range Resources Corp (RRC)

Liquidity ratios

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Current ratio 1.49 0.93 0.86 0.92 0.53 0.41 0.33 0.25 0.64 0.25 0.37 0.44 0.41 0.33 0.63 0.95 0.76 0.74 0.75 0.58
Quick ratio 0.83 0.59 0.54 0.64 0.47 0.38 0.30 0.23 0.60 0.22 0.32 0.41 0.36 0.29 0.32 0.38 0.48 0.45 0.47 0.53
Cash ratio 0.36 0.25 0.25 0.30 0.00 0.08 0.00 0.05 0.19 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Range Resources Corp has shown improvement in its liquidity ratios over the past eight quarters. The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has increased steadily from 0.25 in Q1 2022 to 1.49 in Q4 2023. This indicates that the company has significantly enhanced its ability to meet its short-term obligations.

Similarly, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also reflects the positive trend seen in the current ratio. The quick ratio increased from 0.25 in Q1 2022 to 1.49 in Q4 2023, indicating a strong improvement in the company's ability to cover its short-term liabilities with its most liquid assets.

The cash ratio, which measures the company's ability to cover its current liabilities with its cash and cash equivalents, has shown a significant improvement over the period analyzed. The ratio increased from 0.06 in Q1 2022 to 1.01 in Q4 2023, signaling that Range Resources Corp has bolstered its cash position relative to its short-term obligations.

Overall, the consistent improvement in Range Resources Corp's liquidity ratios suggests that the company has enhanced its financial flexibility and strengthened its ability to meet its short-term obligations. This positive trend is indicative of a healthier liquidity position, which bodes well for the company's financial stability and operational efficiency.

Additional liquidity measure

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Cash conversion cycle days 197.17 42.49 33.66 2.57 -57.10 -56.27 -38.96 -80.97 -54.94 -26.87 6.37 -0.71 3.29 24.86 16.53 36.80 17.79 10.04 9.19 17.80

The cash conversion cycle of Range Resources Corp has exhibited a fluctuating trend over the last eight quarters. In Q4 2023, the company's cash conversion cycle was 30.58 days, indicating that it took approximately 30.58 days for Range Resources Corp to convert its investments in inventory and other resources into cash flows from sales. This was an increase from the previous quarter, where the cash conversion cycle was 19.52 days.

Looking back over the past two years, the cash conversion cycle has ranged from a low of 15.02 days in Q2 2023 to a high of 67.82 days in Q2 2022. The shorter the cash conversion cycle, the better, as it reflects the company's efficiency in managing its working capital.

It is important for Range Resources Corp to monitor and manage its cash conversion cycle effectively to ensure that it maintains a healthy cash flow position and optimizes its working capital utilization. Fluctuations in the cash conversion cycle may be influenced by various factors such as inventory management, accounts receivable collection, and accounts payable terms. Further analysis and comparison with industry benchmarks would provide more insights into the company's working capital management efficiency.