Range Resources Corp (RRC)
Debt-to-capital ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
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 |
Debt-to-capital ratio | 0.22 | 0.32 | 0.39 | 0.56 | 0.65 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,089,610K ÷ ($1,089,610K + $3,936,660K)
= 0.22
The debt-to-capital ratio of Range Resources Corp has shown a declining trend over the years, indicating a decreasing reliance on debt to fund its operations and investment activities.
As of December 31, 2020, the ratio stood at 0.65, suggesting that 65% of the company's capital structure was comprised of debt. By December 31, 2024, this ratio had decreased significantly to 0.22, indicating a reduction in the proportion of debt relative to the company's total capital.
The declining trend in the debt-to-capital ratio reflects Range Resources Corp's efforts to strengthen its financial position and reduce its financial risk. A lower debt-to-capital ratio is generally viewed positively by investors and creditors as it demonstrates a more conservative financial strategy and improved ability to meet financial obligations.
Overall, the decreasing debt-to-capital ratio of Range Resources Corp signifies a more balanced capital structure and improved financial stability over the years.
Peer comparison
Dec 31, 2024