RRC Current Ratio Analysis

The current ratio measures whether a company can cover its short-term bills with its short-term assets; a ratio of 0.65x means RRC has only $0.65 in current assets for every $1 of current liabilities due within a year.

That is well below the sector median of 1.25x, placing RRC in the 12th percentile among peers, so most comparable companies have far more liquidity cushion. The year-over-year change is not available, but quarter-over-quarter the ratio rose 18.2%, from 0.55x to 0.65x, showing a short-term improvement; however, there is no trend direction for the last eight quarters because only two historical data points exist. The combination of a low level and a single quarterly uptick suggests reduced near-term liquidity risk than before, but the ratio still leaves limited room to absorb unexpected cash demands. That implies higher short-term insolvency risk relative to peers, yet the improvement could reflect a turnaround if it continues. Because the metric points to elevated liquidity risk but the stock’s overall verdict is NEUTRAL, this ratio leans toward the negative side of that neutral stance rather than contradicting it.

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