Expand Energy Corp. (NASDAQ:EXE)

Return on Assets (ROA) for the period between 2021 and 2024 demonstrates a significant declining trend. Initially strong, the metric experienced substantial decreases, culminating in a negative value in the most recent year.

Overall Trend

A consistent downward trajectory is evident in ROA over the four-year period. The metric decreased from 57.48% in 2021 to -2.56% in 2024.

2021-2022

From 2021 to 2022, ROA decreased from 57.48% to 31.91%, representing a substantial decline. This decrease occurred alongside an increase in total assets, while net income also decreased, suggesting a less efficient utilization of the expanded asset base.

2022-2023

The decline continued from 2022 to 2023, with ROA falling to 16.83%. Net income experienced a more pronounced decrease during this period, while total assets decreased slightly. This indicates that the reduction in profitability was a primary driver of the lower ROA.

2023-2024

The most significant change occurred between 2023 and 2024. ROA turned negative, reaching -2.56%. This coincided with a substantial increase in total assets and a shift to a net loss. The considerable asset growth without corresponding profitability resulted in the negative ROA.

The progression from positive and high ROA values to a negative value suggests increasing challenges in generating profits relative to the company’s asset base. The increasing asset base, coupled with declining and ultimately negative net income, is the primary driver of this trend.