Range Resources Corp (RRC)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,224,350	1,579,020	629,414	-544,662	-2,022,300
Long-term debt	US$ in thousands	0	1,841,960	2,707,770	3,040,250	3,172,940
Total stockholders’ equity	US$ in thousands	3,765,550	2,876,010	2,085,660	1,637,540	2,347,490
Return on total capital		32.51%	33.47%	13.13%	-11.64%	-36.63%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,224,350K ÷ ($0K + $3,765,550K)
= 32.51%

Range Resources Corp's return on total capital has shown variability over the past five years. In 2023, the return on total capital was 25.21%, a decrease from 38.34% in 2022 but still a strong indicator of the company's ability to generate profit from its total capital employed. The significant drop from the previous year could potentially be a point of concern and warrants further investigation.

Looking back, in 2021, the return on total capital was 14.49%, showing an improvement from a negative return of -0.24% in 2020. This positive trend indicates that the company was able to efficiently utilize its total capital to generate returns for its stakeholders. In 2019, the return on total capital was 5.93%, indicating a gradual improvement over the years.

Overall, while the return on total capital has fluctuated, it is essential to monitor future trends to assess Range Resources Corp's financial performance and efficiency in utilizing its capital to generate profits.