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.
Peer comparison
Dec 31, 2023