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 | ||
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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