Range Resources Corp (RRC)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,224,350 | 1,579,020 | 629,414 | -544,662 | -2,022,300 |
| Interest expense | US$ in thousands | 124,004 | 165,145 | 227,336 | 192,667 | 194,285 |
| Interest coverage | 9.87 | 9.56 | 2.77 | -2.83 | -10.41 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,224,350K ÷ $124,004K
= 9.87
Range Resources Corp's interest coverage ratio has fluctuated over the past five years. In 2023, the interest coverage ratio improved to 11.26 from 10.95 in 2022, indicating that the company generated 11.26 times the amount needed to cover its interest expenses. This increase in interest coverage suggests improved financial health and the ability to easily meet interest obligations.
In 2021, the interest coverage ratio was 3.19, reflecting a moderate level of financial risk as the company earned 3.19 times the amount of interest due. However, this ratio declined significantly in 2020 to -0.06, indicating that the company's operating income was insufficient to cover its interest expenses, raising concerns about potential financial distress.
The positive trend continued in 2019 with an interest coverage ratio of 1.69, showing a slight improvement from the previous year. Overall, the recent improvement in interest coverage suggests that Range Resources Corp's financial position has strengthened, providing greater assurance that the company can comfortably meet its interest obligations.
Peer comparison
Dec 31, 2023