Range Resources Corp (RRC)

Range Resources Corp has exhibited a declining trend in its solvency ratios over the past five years. The debt-to-assets ratio has decreased from 0.48 in 2019 to 0.25 in 2023, indicating that the company's level of debt in relation to its total assets has improved. Similarly, the debt-to-capital ratio has also shown a decreasing trend from 0.57 in 2019 to 0.32 in 2023, suggesting that the company's debt as a percentage of its total capital has decreased.

Furthermore, the debt-to-equity ratio has shown a significant improvement from 1.35 in 2019 to 0.47 in 2023, signaling a reduction in the company's dependence on debt financing relative to its equity. Additionally, the financial leverage ratio has declined from 2.82 in 2019 to 1.91 in 2023, indicating that the company has become less leveraged and relies less on debt to finance its operations.

Overall, the solvency ratios of Range Resources Corp have shown a positive trajectory over the years, reflecting an improved financial position and reduced financial risk for the company.

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Coverage ratios

Range Resources Corp's interest coverage has shown variable performance over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. In 2023 and 2022, the interest coverage ratios were 11.26 and 10.95, respectively, indicating the company's ability to cover its interest payments more than ten times over with its operating income. This suggests a strong ability to meet debt obligations from its operational earnings during those years.

However, in 2021, the interest coverage ratio dropped significantly to 3.19, which may raise some concerns about the company's ability to comfortably meet its interest payments from its operating income alone. In 2020, the ratio was negative at -0.06, indicating that the company's operating income was insufficient to cover its interest expenses, which raises red flags about financial stability.

The ratio improved in 2019 to 1.69 but still remains relatively low, suggesting that the company's ability to cover its interest payments with its operating income was not as strong compared to the more recent years.

Overall, Range Resources Corp's interest coverage has varied widely over the past five years, reflecting fluctuations in operating performance and its ability to meet interest obligations. Investors and stakeholders should closely monitor this ratio to assess the company's financial health and debt-servicing capacity going forward.