Range Resources Corp (RRC)

Interest coverage

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,224,347 1,842,415 2,218,134 2,740,261 1,579,019 1,510,203 715,616 16,982 629,414 -245,718 -659,877 -700,655 -544,662 -2,895,974 -2,186,477 -1,838,241 -2,022,308 -1,546,188 -1,390,908 -1,652,411
Interest expense (ttm) US$ in thousands 124,004 131,151 139,288 150,172 165,145 184,274 202,347 217,633 227,336 219,500 210,690 202,027 192,667 188,165 187,163 190,266 194,285 199,422 207,226 209,361
Interest coverage 9.87 14.05 15.92 18.25 9.56 8.20 3.54 0.08 2.77 -1.12 -3.13 -3.47 -2.83 -15.39 -11.68 -9.66 -10.41 -7.75 -6.71 -7.89

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,224,347K ÷ $124,004K
= 9.87

Range Resources Corp's interest coverage ratio has exhibited significant improvement over the past eight quarters, reflecting the company's ability to meet its interest obligations. The interest coverage ratio measures the company's ability to pay interest expenses on its outstanding debt using its earnings before interest and taxes (EBIT).

In Q1 2022, the interest coverage ratio was 1.06, indicating that the company's EBIT covered its interest expenses slightly more than once. However, there was a sharp increase in the interest coverage ratio in subsequent quarters. By Q4 2023, the interest coverage ratio reached 11.26, showing a substantial improvement and indicating that the company's ability to cover its interest expenses had increased significantly.

The trend indicates that Range Resources Corp's financial position has strengthened as its earnings have grown relative to its interest expenses. A higher interest coverage ratio is generally considered favorable, as it demonstrates the company's ability to manage its debt effectively and indicates lower financial risk. The improvement in Range Resources Corp's interest coverage ratio highlights its improving financial health and ability to meet its debt obligations.


Peer comparison

Dec 31, 2023