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.