Range Resources Corp (RRC)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,484,330 | 3,084,160 | 2,130,900 | 122,465 | -2,643,460 |
| Total assets | US$ in thousands | 7,203,880 | 6,625,560 | 6,660,510 | 6,136,940 | 6,612,400 |
| Operating ROA | 34.49% | 46.55% | 31.99% | 2.00% | -39.98% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,484,330K ÷ $7,203,880K
= 34.49%
Range Resources Corp's operating return on assets (operating ROA) has shown a fluctuating trend over the past five years. In 2023, the operating ROA decreased to 19.38% from 27.30% in 2022, indicating a decline in the company's ability to generate operating profit from its assets. Despite this decrease, the operating ROA in 2023 remains higher compared to the figures in 2021, 2020, and 2019.
The significant increase in operating ROA from 2020 to 2021 (from -0.18% to 10.90%) suggests an improvement in the company's operational efficiency and profitability during that period. However, the subsequent decrease in 2022 and 2023 raises concerns about the company's ability to sustain or grow its returns on assets in the near future.
It is essential for Range Resources Corp to analyze the factors contributing to the fluctuations in its operating ROA, such as changes in revenue, operating expenses, asset management, and industry conditions. By identifying the root causes of these fluctuations, the company can implement strategies to enhance its operational performance and ultimately improve its profitability in the long term.
Peer comparison
Dec 31, 2023