Net Profit Margin
since 2021
Calculation
Expand Energy Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss)1 | ÷ | Revenues1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | -16.76% | = | 100 | × | (714) | ÷ | 4,259) |
| Dec 31, 2023 | 40.00% | = | 100 | × | 2,419) | ÷ | 6,047) |
| Dec 31, 2022 | 34.95% | = | 100 | × | 4,936) | ÷ | 14,123) |
| Dec 31, 2021 | 86.67% | = | 100 | × | 6,328) | ÷ | 7,301) |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 US$ in millions
The net profit margin exhibited significant fluctuations between 2021 and 2024. Initially high, the margin experienced a substantial decline, culminating in a negative value in the most recent year. This analysis details the observed trends and potential implications.
- Net Profit Margin Trend
- In 2021, the net profit margin stood at 86.67%. This represents a very high level of profitability, indicating that a large proportion of revenue was converted into net income. A considerable decrease was observed in 2022, with the net profit margin falling to 34.95%. While still positive, this signifies a substantial reduction in profitability. The margin partially recovered in 2023, reaching 40.00%, suggesting some improvement in cost management or pricing strategies. However, this positive trend was reversed in 2024, as the net profit margin declined sharply to -16.76%, indicating a net loss relative to revenue.
- Relationship to Revenue
- The changes in net profit margin do not appear directly correlated with revenue increases. Revenue increased significantly from 2021 to 2022, but the net profit margin decreased substantially during the same period. Revenue then decreased in both 2023 and 2024, while the net profit margin initially increased in 2023 before becoming negative in 2024. This suggests that factors beyond revenue volume, such as cost of goods sold, operating expenses, or other income/expenses, are significantly impacting profitability.
- Net Income (Loss) Progression
- Net income followed a similar pattern to the net profit margin. It decreased from US$6,328 million in 2021 to US$2,419 million in 2023, and then resulted in a net loss of US$714 million in 2024. This confirms the declining profitability trend and highlights the increasing financial pressure experienced in the latest year.
The substantial decline in net profit margin and the shift to a net loss in 2024 warrant further investigation. A detailed analysis of the income statement is recommended to identify the specific drivers behind these changes, such as increased costs, decreased pricing power, or non-recurring expenses.
Comparison to Competitors
Expand Energy Corp., net profit margin, long-term trends, comparison to competitors
| Expand Energy Corp. | Chevron Corp. | ConocoPhillips | Exxon Mobil Corp. | |
|---|---|---|---|---|
| Dec 31, 2024 | -16.76% | 9.13% | 16.89% | 9.93% |
| Dec 31, 2023 | 40.00% | 10.85% | 19.52% | 10.76% |
| Dec 31, 2022 | 34.95% | 15.05% | 23.80% | 13.98% |
| Dec 31, 2021 | 86.67% | 10.04% | 17.63% | 8.33% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Comparison to Sector (Oil, Gas & Consumable Fuels)
Expand Energy Corp., net profit margin, long-term trends, comparison to sector (oil, gas & consumable fuels)
| Expand Energy Corp. | Oil, Gas & Consumable Fuels | |
|---|---|---|
| Dec 31, 2024 | -16.76% | 10.31% |
| Dec 31, 2023 | 40.00% | 11.63% |
| Dec 31, 2022 | 34.95% | 15.41% |
| Dec 31, 2021 | 86.67% | 9.78% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Comparison to Industry (Energy)
Expand Energy Corp., net profit margin, long-term trends, comparison to industry (energy)
| Expand Energy Corp. | Energy | |
|---|---|---|
| Dec 31, 2024 | -16.76% | 10.43% |
| Dec 31, 2023 | 40.00% | 11.68% |
| Dec 31, 2022 | 34.95% | 15.29% |
| Dec 31, 2021 | 86.67% | 9.70% |
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).