Range Resources Corp (RRC)

Range Resources Corp's solvency ratios indicate a positive trend over the years, showing improved financial health and lower dependency on debt.

- The Debt-to-assets ratio has decreased from 0.50 in 2020 to 0.15 in 2024, indicating that the company's assets are becoming less financed by debt over time.

- The Debt-to-capital ratio has also shown a declining trend, decreasing from 0.65 in 2020 to 0.22 in 2024, highlighting the company's decreasing reliance on debt for its capital structure.

- The Debt-to-equity ratio has significantly decreased from 1.86 in 2020 to 0.28 in 2024, suggesting that the company has reduced its debt relative to shareholders' equity, which is a positive indicator of financial health and lower financial risk.

- The Financial leverage ratio has decreased consistently from 3.75 in 2020 to 1.87 in 2024, indicating that the company has been effectively managing its financial leverage and reducing its dependency on debt to finance its operations.

Overall, the declining trend in these solvency ratios suggests that Range Resources Corp has been successful in improving its financial stability and reducing its financial risk by decreasing its reliance on debt financing over the years.

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Coverage ratios

Range Resources Corp's interest coverage ratio has shown some fluctuations over the years. As of December 31, 2020, the company had a concerning interest coverage ratio of -2.83, indicating that its operating income was insufficient to cover its interest expenses. However, there has been a positive turnaround in subsequent years with the interest coverage ratio improving to 2.77 as of December 31, 2021. This indicates the company's ability to meet its interest obligations improved in this period.

Furthermore, Range Resources Corp's interest coverage continued to strengthen in the following years, reaching a healthier level of 9.56 as of December 31, 2022, and further increasing to 9.87 as of December 31, 2023. These values suggest that the company's operating income was comfortably able to cover its interest expenses during these periods.

However, there was a slight dip in the interest coverage ratio to 3.11 as of December 31, 2024. Although this value is lower compared to the previous years, it still indicates that Range Resources Corp was able to cover its interest payments with its operating income, albeit to a lesser extent than in the prior years.

Overall, the trend in Range Resources Corp's interest coverage ratio shows improvement from a concerning level to a more solid position, although there was a slight decrease in the most recent period. Analysts may need to closely monitor the company's financial performance to ensure that it maintains an adequate interest coverage ratio to meet its debt obligations comfortably in the future.