Range Resources Corp (RRC)
Return on equity (ROE)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 871,142 | 1,183,370 | 411,778 | -711,777 | -1,716,300 |
| Total stockholders’ equity | US$ in thousands | 3,765,550 | 2,876,010 | 2,085,660 | 1,637,540 | 2,347,490 |
| ROE | 23.13% | 41.15% | 19.74% | -43.47% | -73.11% |
December 31, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $871,142K ÷ $3,765,550K
= 23.13%
Range Resources Corp's return on equity (ROE) has varied significantly over the past five years. In 2023, the ROE stands at 22.74%, indicating that the company generated a profit of $0.2274 for every dollar of shareholders' equity. This represents a decrease from the previous year when the ROE was 40.15%.
The significant drop in ROE from 2022 to 2023 may raise concerns about the company's profitability and efficiency in utilizing shareholder funds. However, it is essential to note that the ROE in 2023 is still positive, suggesting that the company is generating a reasonable return on equity.
Comparing the current ROE to earlier years, Range Resources Corp's performance has shown improvement since 2020 when the ROE was -43.47%, indicating a loss on shareholder equity. The company faced further challenges in 2019 when the ROE was significantly negative at -73.12%.
Overall, while the recent decline in ROE is a point of consideration, the company has made positive strides in improving its profitability and efficiency compared to previous years. Stakeholders should continue to monitor Range Resources Corp's ROE to assess its ongoing financial health and performance.
Peer comparison
Dec 31, 2023