Range Resources Corp (RRC)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.80% | 81.61% | 80.50% | 49.16% | -2.46% |
| Operating profit margin | 73.62% | 74.37% | 72.72% | 6.22% | -93.49% |
| Pretax margin | 32.61% | 34.10% | 13.72% | -37.45% | -78.39% |
| Net profit margin | 25.82% | 28.54% | 14.05% | -36.15% | -60.70% |
Range Resources Corp has shown consistent gross profit margins of 100% over the five-year period from 2019 to 2023, indicating efficiency in generating revenue after accounting for the cost of goods sold. However, when looking at operating profit margins, we can observe some fluctuation. The company experienced a peak operating profit margin in 2022 at 43.62%, a significant drop to 24.78% in 2021, and even reported negative margins in 2020 and 2019.
Similarly, the pretax margin for Range Resources Corp has varied over the years, with a positive trend from 2019 to 2023 but with significant losses reported in 2020 and 2021. The net profit margin also shows a similar trend, with positive margins in the most recent years but significant losses in 2020 and 2019.
Overall, the profitability ratios reflect some inconsistency in the operational performance of Range Resources Corp over the five-year period, indicating potential challenges in maintaining profitability levels. Further analysis of the company's financial and operational strategies would be necessary to understand the underlying factors contributing to these fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 34.49% | 46.55% | 31.99% | 2.00% | -39.98% |
| Return on assets (ROA) | 12.09% | 17.86% | 6.18% | -11.60% | -25.96% |
| Return on total capital | 32.51% | 33.47% | 13.13% | -11.64% | -36.63% |
| Return on equity (ROE) | 23.13% | 41.15% | 19.74% | -43.47% | -73.11% |
Range Resources Corp has shown a fluctuating trend in profitability ratios over the past five years.
The Operating Return on Assets (Operating ROA) has ranged from a low of -0.18% in 2020 to a high of 27.30% in 2022, with a current value of 19.38% in 2023. This ratio indicates the company's ability to generate operating profits from its assets, and the increasing trend from 2020 to 2022 suggests improved operational efficiency.
The Return on Assets (ROA) has also varied significantly, from a negative figure of -25.96% in 2019 to a positive value of 17.43% in 2022. The 11.88% ROA in 2023 indicates that the company is generating profits from its total assets, albeit at a lower rate compared to the previous year.
The Return on Total Capital has followed a similar pattern, with a high of 38.34% in 2022 and a current value of 25.21% in 2023. This ratio reflects the company's ability to generate returns from both debt and equity capital invested in the business.
Lastly, the Return on Equity (ROE) has experienced significant fluctuations, with a low of -73.12% in 2019 to a peak of 40.15% in 2021. The 22.74% ROE in 2023 demonstrates the company's ability to generate profits for its shareholders from the equity invested in the business.
Overall, Range Resources Corp's profitability ratios indicate a volatile performance over the past five years, with some improvements in operational efficiency and profitability, but also periods of negative returns. The company's management may need to focus on maintaining a consistent and sustainable level of profitability in the future to enhance shareholder value.