Range Resources Corp (RRC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.15 | 0.15 | 0.15 | 0.00 | 0.25 | 0.00 | 0.00 | 0.00 | 0.28 | 0.26 | 0.28 | 0.28 | 0.41 | 0.43 | 0.49 | 0.49 | 0.50 | 0.51 | 0.49 | 0.09 |
| Debt-to-capital ratio | 0.22 | 0.22 | 0.22 | 0.00 | 0.32 | 0.00 | 0.00 | 0.00 | 0.39 | 0.46 | 0.48 | 0.53 | 0.56 | 0.70 | 0.67 | 0.65 | 0.65 | 0.66 | 0.58 | 0.19 |
| Debt-to-equity ratio | 0.28 | 0.28 | 0.28 | 0.00 | 0.47 | 0.00 | 0.00 | 0.00 | 0.64 | 0.85 | 0.93 | 1.14 | 1.30 | 2.31 | 1.99 | 1.84 | 1.86 | 1.91 | 1.35 | 0.24 |
| Financial leverage ratio | 1.87 | 1.87 | 1.88 | 1.93 | 1.91 | 1.99 | 2.00 | 2.08 | 2.30 | 3.20 | 3.35 | 4.10 | 3.19 | 5.34 | 4.09 | 3.71 | 3.75 | 3.77 | 2.76 | 2.64 |
Range Resources Corp's solvency ratios provide insights into the company's ability to meet its long-term obligations.
1. Debt-to-assets ratio:
The debt-to-assets ratio shows a declining trend from 2020 to 2023 before increasing slightly in 2024. This indicates that the company has been reducing its reliance on debt to finance its assets over the years, reaching a very low level by the first quarter of 2024.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio also decreases steadily from 2020 to 2023, indicating a decreasing reliance on debt to fund the company's capital structure. However, there is a slight increase in this ratio in 2024, suggesting a small uptick in debt usage relative to capital.
3. Debt-to-equity ratio:
The debt-to-equity ratio follows a similar pattern to the previous ratios, showing a consistent decline from 2020 to 2023, indicating a decreasing level of debt in relation to equity. However, there is a slight increase in this ratio in 2024, indicating a small increase in debt relative to equity.
4. Financial leverage ratio:
The financial leverage ratio displays a decreasing trend from 2020 to 2023, indicating that the company has been reducing its financial leverage over these years, meaning less risk associated with debt financing. This trend is a positive sign for the company's long-term financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Range Resources Corp experienced a significant improvement in its interest coverage ratio over the analyzed period, with a notable upward trend from negative figures to positive ratios. The interest coverage ratio, which measures the company's ability to meet its interest obligations with its operating income, started in negative territory in early 2020 but steadily increased over time.
The interest coverage ratio remained negative until the end of 2021, indicating that the company's operating income was insufficient to cover its interest expenses during this period. However, by March 2022, the interest coverage ratio turned positive, signifying an improvement in the company's ability to meet its interest obligations.
From March 2022 onwards, Range Resources Corp continued to strengthen its interest coverage ratio, reaching a peak of 18.25 by March 2023. This sharp increase suggests that the company's operating income substantially exceeded its interest expenses during this period.
Subsequently, the interest coverage ratio slightly declined but remained at healthy levels above 5 in the latter part of 2024, indicating that Range Resources Corp continued to comfortably cover its interest payments with its operating earnings.
Overall, the positive trend in Range Resources Corp's interest coverage ratio reflects a favorable financial performance and improved financial health, as the company was able to better manage its interest obligations and generate sufficient operating income to support its debt servicing requirements.