Range Resources Corp (RRC)
Return on total capital
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 369,363 | 693,103 | 693,300 | 729,637 | 1,224,347 | 1,842,415 | 2,218,134 | 2,740,261 | 1,579,019 | 1,510,203 | 715,616 | 16,982 | 629,414 | -245,718 | -659,877 | -700,655 | -544,662 | -2,895,974 | -2,186,477 | -1,838,241 |
| Long-term debt | US$ in thousands | 1,089,610 | 1,089,130 | 1,088,660 | — | 1,774,230 | 0 | 0 | 0 | 1,841,960 | 1,831,680 | 1,830,500 | 1,829,730 | 2,707,770 | 2,730,470 | 3,036,660 | 3,055,220 | 3,040,250 | 3,042,130 | 3,165,130 | 594,250 |
| Total stockholders’ equity | US$ in thousands | 3,936,660 | 3,868,090 | 3,861,030 | 3,826,770 | 3,765,550 | 3,447,580 | 3,387,610 | 3,305,460 | 2,876,010 | 2,163,480 | 1,977,180 | 1,600,100 | 2,085,660 | 1,181,280 | 1,523,260 | 1,663,850 | 1,637,540 | 1,593,970 | 2,336,020 | 2,495,810 |
| Return on total capital | 7.35% | 13.98% | 14.01% | 19.07% | 22.10% | 53.44% | 65.48% | 82.90% | 33.47% | 37.80% | 18.79% | 0.50% | 13.13% | -6.28% | -14.47% | -14.85% | -11.64% | -62.47% | -39.75% | -59.49% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (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 past few years.
From March 31, 2020, to December 31, 2021, the company experienced negative returns on total capital, indicating that it was not effectively utilizing its capital resources to generate profits. However, starting from March 31, 2022, there was a notable improvement in the return on total capital, with the percentage increasing steadily over the following quarters.
By December 31, 2024, the return on total capital had decreased slightly to 7.35%, which is still positive and suggests that the company has been able to generate a reasonable return on the total capital employed.
Overall, the recent positive trend in return on total capital is a good sign for Range Resources Corp, indicating improved efficiency in capital utilization and potentially stronger profitability in the future. It would be important for the company to continue monitoring and managing its capital effectively to sustain this positive trajectory.
Peer comparison
Dec 31, 2024