Range Resources Corp (RRC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,203,880 | 6,625,560 | 6,660,510 | 6,136,940 | 6,612,400 |
| Total stockholders’ equity | US$ in thousands | 3,765,550 | 2,876,010 | 2,085,660 | 1,637,540 | 2,347,490 |
| Financial leverage ratio | 1.91 | 2.30 | 3.19 | 3.75 | 2.82 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,203,880K ÷ $3,765,550K
= 1.91
Range Resources Corp's financial leverage ratio has fluctuated over the past five years. The ratio started at 2.82 in 2019, increased to 3.75 in 2020, then decreased to 3.19 in 2021, further dropped to 2.30 in 2022, and finally reached 1.91 in 2023.
A financial leverage ratio above 1 indicates that the company is using debt to finance its operations. Range Resources Corp's decreasing trend in the financial leverage ratio from 2020 to 2023 signifies a reduction in the company's reliance on debt to fund its activities, which could be seen as a positive indicator of improved financial health and stability.
Overall, the downward trend in the financial leverage ratio suggests that Range Resources Corp has been effectively managing its debt levels and working to strengthen its balance sheet over the analyzed period. However, further analysis of the company's debt structure, repayment terms, and overall financial performance is recommended to gain a more comprehensive understanding of its leverage position.
Peer comparison
Dec 31, 2023