Range Resources Corp (RRC)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 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 | 0.48 | 0.04 | 0.10 | 0.10 |
| Debt-to-capital ratio | 0.00 | 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 | 0.57 | 0.08 | 0.18 | 0.19 |
| Debt-to-equity ratio | 0.00 | 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 | 1.35 | 0.09 | 0.22 | 0.23 |
| Financial leverage ratio | 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 | 2.82 | 2.13 | 2.33 | 2.37 |
Range Resources Corp's solvency ratios show a general trend of improvement over the past year, indicating a stronger financial position and lower risk of insolvency. The debt-to-assets ratio has decreased from 0.28 in Q4 2022 to 0.25 in Q4 2023, suggesting that the company has been reducing its reliance on debt to finance its assets. Similarly, the debt-to-capital ratio has declined from 0.39 in Q4 2022 to 0.32 in Q4 2023, demonstrating a more conservative capital structure.
The debt-to-equity ratio, while still relatively high, has decreased from 0.64 in Q4 2022 to 0.47 in Q4 2023, indicating that the company has been able to decrease its debt in relation to its equity. The financial leverage ratio has also improved significantly, decreasing from 2.30 in Q4 2022 to 1.91 in Q4 2023, reflecting a lower level of financial risk.
Overall, the solvency ratios of Range Resources Corp show a positive trend towards a healthier balance sheet and improved financial stability, suggesting that the company is managing its debt levels effectively and reducing its risk exposure.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Range Resources Corp has shown a consistent improvement in its interest coverage ratio over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest obligations from its operating earnings.
In Q1 2022, the interest coverage ratio was relatively low at 1.06, indicating that the company's operating earnings were only sufficient to cover its interest expenses slightly over once. However, over the subsequent quarters, there was a significant increase in the interest coverage ratio, reaching 18.94 in Q1 2023. This substantial improvement suggests that Range Resources Corp's earnings have become increasingly more sufficient to cover its interest expenses and indicates a lower level of financial risk.
The consistent upward trend in the interest coverage ratio from Q1 2022 to Q1 2023 reflects a positive financial performance and indicates that the company is in a better position to comfortably meet its interest payments. This improvement may signal enhanced financial stability, lower credit risk, and increased investor confidence in the company's ability to manage its debt obligations effectively.