Range Resources Corp (RRC)

Return on total capital

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	369,363	1,224,350	1,579,020	629,414	-544,662
Long-term debt	US$ in thousands	1,089,610	1,774,230	1,841,960	2,707,770	3,040,250
Total stockholders’ equity	US$ in thousands	3,936,660	3,765,550	2,876,010	2,085,660	1,637,540
Return on total capital		7.35%	22.10%	33.47%	13.13%	-11.64%

December 31, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $369,363K ÷ ($1,089,610K + $3,936,660K)
= 7.35%

Range Resources Corp's return on total capital has shown significant fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The return on total capital was -11.64% in 2020, indicating a negative return on the capital invested during that year. However, there was a substantial improvement in 2021, with the return increasing to 13.13%, suggesting a positive return on the company's total capital.

In 2022, Range Resources Corp experienced a notable surge in its return on total capital to 33.47%, reflecting a strong performance in utilizing its capital effectively to generate returns. The following year, in 2023, the return on total capital remained relatively high at 22.10%, indicating continued efficiency in deploying capital to generate profits.

However, in 2024, there was a decline in the return on total capital to 7.35%, signaling a decrease in the company's ability to generate returns on the total capital employed. This decline could be attributed to various factors, such as changes in market conditions, operational challenges, or shifts in the company's investment strategies.

Overall, Range Resources Corp's return on total capital has exhibited variability over the five-year period, with both positive and negative fluctuations. It is essential for the company to monitor and analyze the factors contributing to these changes to ensure sustainable and optimal utilization of its capital resources for generating returns in the future.