Range Resources Corp (RRC)

Interest coverage

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 369,363 693,103 693,300 729,637 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
Interest expense (ttm) US$ in thousands 118,758 119,576 120,874 122,278 124,004 131,151 139,288 150,172 165,145 184,274 202,347 217,633 227,336 219,500 210,690 202,027 192,667 188,165 187,163 190,266
Interest coverage 3.11 5.80 5.74 5.97 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

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $369,363K ÷ $118,758K
= 3.11

Range Resources Corp's interest coverage ratio fluctuated significantly over the analyzed period, with values ranging from negative to positive figures. The company faced challenges in meeting its interest payment obligations in the past, as indicated by the negative values observed up to the first half of 2021.

However, starting from the end of 2021 and continuing into 2022 and 2023, the interest coverage ratio showed substantial improvement, entering positive territory. This suggests that the company's ability to cover its interest expenses improved, indicating a potentially healthier financial position.

Overall, the trend indicates a positive turnaround in Range Resources Corp's financial health in terms of its ability to cover interest payments. It is essential for the company to sustain this positive trajectory to ensure long-term financial stability and mitigate potential financial risks.