Expand Energy Corp. (NASDAQ:EXE)

The financial data reveals several notable trends in company performance and financial health over the four-year period.

Asset Turnover Ratios

Both reported and adjusted total asset turnover ratios demonstrate a peak in 2022, reaching 0.91 (reported) and 1.0 (adjusted), followed by a marked decline through 2023 and 2024 to lows of 0.42/0.45 and 0.15/0.16 respectively. This pattern indicates a significant deterioration in asset utilization efficiency after 2022, suggesting challenges in generating sales from asset base in the latter years.

Liquidity Ratios

The reported and adjusted current ratios both increased sharply from 0.86 in 2021 to 1.99 in 2023, signaling improved short-term liquidity and greater capacity to cover current liabilities. However, this trend reversed in 2024, with ratios falling to 0.64, which could imply a weakening liquidity position entering that year.

Leverage Ratios

Debt to equity and debt to capital ratios show an overall downward trend from 2021 to 2023, suggesting a reduction in reliance on debt financing. Debt to equity declined from around 0.4 to approximately 0.19 reported, and similarly adjusted ratios fell in the same period. However, both ratios increased again in 2024, indicating some resurgence in leverage. Financial leverage mirrors this pattern, decreasing through 2023 and then rising modestly in 2024, which reflects changing capital structure dynamics over time.

Profitability Ratios

Profit margins, both reported and adjusted, experienced a substantial decrease between 2021 and 2024. From exceptionally high margins above 80% in 2021, levels dropped sharply, turning negative in 2024 with margins near -17% reported and -19% adjusted. Similarly, return on equity (ROE) showed a steep decline, falling from over 100% in 2021 to negative figures in 2024, indicating losses. Return on assets (ROA) followed a consistent downward trend from 57% to negative territory by 2024. The overall decline in these profitability metrics indicates deteriorating earnings quality and suggests operational or market challenges adversely affecting profitability.

In summary, the company exhibited strong financial metrics in 2021 and 2022 but faced substantial setbacks in asset efficiency, liquidity, leverage, and, notably, profitability from 2023 onward. The marked downturn in key profitability indicators and asset turnover ratios in 2024 is a concern, suggesting issues in sustaining operational profitability and efficient resource utilization toward the end of the analyzed period.

The annual financial data reveals significant fluctuations and notable trends across the examined periods.

Revenues

Revenues increased sharply from 7,301 million USD in 2021 to a peak of 14,123 million USD in 2022, indicating substantial growth during this period. However, revenues declined markedly in the following years, dropping to 6,047 million USD in 2023 and further to 4,259 million USD in 2024, reflecting a significant contraction after the peak year.

Total Assets

Total assets increased steadily from 11,009 million USD in 2021 to 15,468 million USD in 2022, followed by a slight decrease to 14,376 million USD in 2023. In 2024, a notable increase occurred, with total assets rising sharply to 27,894 million USD, indicating substantial asset accumulation or acquisition in that year.

Reported Total Asset Turnover

The reported total asset turnover ratio, which measures revenue generated per unit of total assets, showed an upward trend from 0.66 in 2021 to 0.91 in 2022, signaling improved efficiency in asset utilization that year. Thereafter, the ratio dropped significantly to 0.42 in 2023, and further declined to 0.15 in 2024, demonstrating a marked decrease in the effectiveness of total assets in generating revenues.

Adjusted Total Assets

Adjusted total assets followed a trajectory similar to total assets. They rose from 11,012 million USD in 2021 to 14,120 million USD in 2022, then slightly declined to 13,444 million USD in 2023. In 2024, adjusted total assets increased substantially to 27,316 million USD, closely paralleling the change in total assets.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio showed an improvement from 0.66 in 2021 to 1.00 in 2022, reflecting optimal asset use under adjusted measures during the peak revenue year. Afterwards, a steep decline in efficiency occurred, with the ratio falling to 0.45 in 2023 and further to 0.16 in 2024, mirroring the trend observed in the reported turnover ratio and indicating a decline in how well adjusted assets generate revenue.

Overall, the data suggests that the company experienced significant revenue growth and asset base expansion in 2022, accompanied by improved asset turnover ratios. However, the subsequent years saw declining revenues coupled with increasing asset bases, leading to deteriorating asset turnover performance. This pattern may indicate challenges in generating revenue efficiently despite larger asset holdings in the later periods.

Current Assets

Current assets experienced an increase from 2103 million US dollars at the end of 2021 to a peak of 2698 million US dollars in 2022. Following this, there was a slight decline to 2609 million US dollars in 2023, and a more pronounced decrease to 1997 million US dollars by the end of 2024. This pattern indicates initial growth, followed by a reduction in the company's liquid and short-term resources.

Current Liabilities

Current liabilities rose marginally from 2447 million US dollars in 2021 to 2704 million US dollars in 2022. There was a significant decrease to 1314 million US dollars in 2023, suggesting a reduction in short-term obligations. However, this was followed by a sharp increase to 3123 million US dollars in 2024, which is the highest in the period examined and may indicate elevated short-term financial pressure.

Reported Current Ratio

The reported current ratio improved from 0.86 in 2021 to 1.00 in 2022, indicating full coverage of current liabilities by current assets at that point. It further strengthened considerably to 1.99 in 2023, showing a strong liquidity position. However, the ratio declined substantially to 0.64 in 2024, reflecting a liquidity challenge where current assets cover only a part of the current liabilities.

Adjusted Current Assets and Adjusted Current Ratio

Adjusted current assets closely track the reported current assets with very minor differences, showing a similar trend of initial growth followed by decline in the final year. Consequently, the adjusted current ratio mirrors the reported current ratio throughout the period, confirming a consistent liquidity assessment even after adjustments.

Summary

The data reveals fluctuations in liquidity over the four years. Initially, liquidity improved steadily, highlighted by an increase in the current ratio to nearly 2 in 2023, indicating a comfortable short-term financial position. However, the subsequent year showed a marked deterioration in liquidity, with current assets decreasing and liabilities sharply increasing, resulting in a current ratio well below 1. This sharp reversal points to potential liquidity strain entering 2024, warranting attention to cash flow management and short-term debt obligations.

The financial data reveals notable fluctuations in the company’s debt levels and equity position over the four-year period ending in 2024. Both total debt and stockholders' equity have demonstrated variable but generally increasing trends, with some divergence in their relative changes influencing leverage ratios.

Total Debt

Total debt initially rose from $2,278 million in 2021 to a peak of $3,093 million in 2022, decreased significantly to $2,028 million in 2023, then surged sharply to $5,680 million by the end of 2024. This pattern indicates considerable borrowing activity, especially notable in the final year when debt more than doubled from the prior year.

Stockholders’ Equity

Stockholders' equity showed steady growth over the period, increasing from $5,671 million in 2021 to $17,565 million in 2024. The growth accelerated particularly between 2023 and 2024, reflecting substantial capital accumulation or retained earnings increases during that period.

Reported Debt to Equity Ratio

The reported debt to equity ratio declined from 0.40 in 2021 to its lowest point of 0.19 in 2023, indicating a reduction in leverage relative to equity. However, in 2024, this ratio rose again to 0.32, corresponding with the marked increase in total debt, suggesting a moderate uptick in financial leverage even as equity grew.

Adjusted Total Debt

The adjusted total debt closely follows the trend of reported total debt, with values marginally higher each year. It rose from $2,316 million in 2021 to $3,212 million in 2022, dropped to $2,127 million in 2023, and then increased sharply to $5,825 million in 2024, mirroring the pattern seen in the reported figures.

Adjusted Stockholders’ Equity

The adjusted equity demonstrates significant growth, though the levels are somewhat lower than the reported equity in some years. Starting at $5,674 million in 2021, it grew to $7,776 million in 2022, $9,797 million in 2023, and reached $16,997 million in 2024. The pace of growth suggests substantial strengthening of the company’s financial base, albeit at adjusted lower levels than reported equity.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio remained relatively stable at 0.41 in both 2021 and 2022, indicating a consistent leverage stance initially. It then decreased to 0.22 in 2023, signaling a reduction in leverage. In 2024, the ratio increased again to 0.34, reflecting the sizable increase in adjusted debt alongside growth in equity. This pattern mirrors that of the reported debt to equity ratio but at consistently higher levels.

Overall, the data reflects a company that has experienced substantial growth in equity base, which has generally outpaced debt increases through 2023, leading to lower leverage ratios in that year. However, the sharp rise in debt during 2024, while equity also expanded, suggests a strategic shift toward increased leverage or financing through debt. The adjusted figures confirm similar trends and highlight cautious recalibration of financial leverage after a period of deleveraging. These developments may impact the company's risk profile and financial flexibility going forward.

The analysis of the financial data over the four-year period reveals several notable trends related to the company's debt and capital structure.

Total Debt and Adjusted Total Debt

Total debt shows a fluctuating pattern, starting at $2,278 million in 2021, increasing to $3,093 million in 2022, then dropping significantly to $2,028 million in 2023, before surging to $5,680 million in 2024. Adjusted total debt follows a similar trajectory, increasing from $2,316 million in 2021 to $3,212 million in 2022, declining to $2,127 million in 2023, and then rising sharply to $5,825 million in 2024. This volatility suggests periods of significant borrowing and subsequent debt reduction, culminating in a substantial increase in leverage in the last year.

Total Capital and Adjusted Total Capital

Total capital has exhibited consistent growth across the period, starting at $7,949 million in 2021 and reaching $23,245 million by 2024. Adjusted total capital reflects a similar upward trend, rising from $7,990 million in 2021 to $22,822 million in 2024, although the growth is somewhat uneven, with a slight contraction observed between 2022 and 2023. This persistent increase in capital base indicates expansion or accumulation of equity and liabilities, supporting the operational or investment activities of the company.

Debt to Capital Ratios

The reported debt to capital ratio declines from 0.29 in 2021 to a low of 0.16 in 2023, suggesting an improvement in the company’s leverage position during this period. However, it slightly increases to 0.24 in 2024, indicating a moderate rise in leverage. Conversely, the adjusted debt to capital ratio remains steady at 0.29 in both 2021 and 2022, decreases to 0.18 in 2023, and then rises to 0.26 in 2024. The movement in these ratios corroborates the observation of fluctuating debt levels relative to capital, with leverage peaking in the most recent year.

Overall, the data reflects a strategic pattern characterized by expansion and fluctuating reliance on debt financing. While capital has grown steadily, debt management appears more variable, with significant increases in debt observed primarily in the latest year. The changes in debt to capital ratios highlight shifts in financial risk, requiring careful monitoring to ensure sustainable leverage levels moving forward.

Total assets

Total assets showed significant fluctuation over the four-year period. There was a strong increase from 11,009 million US dollars in 2021 to 15,468 million in 2022, followed by a decline to 14,376 million in 2023. In 2024, total assets rose sharply again, reaching 27,894 million US dollars, marking the highest value in the dataset. This pattern indicates a period of volatility with an overall upward trend in asset base.

Stockholders’ equity

Stockholders’ equity consistently increased each year. Starting from 5,671 million US dollars in 2021, it advanced to 9,124 million in 2022, 10,729 million in 2023, and further to 17,565 million in 2024. The rising equity figures suggest enhanced net asset value and potentially improved profitability or capital infusion over the period.

Reported financial leverage

The reported financial leverage ratio displayed a downward trend from 1.94 in 2021 to 1.34 in 2023, indicating a reduction in leverage and possibly a stronger equity base relative to liabilities. However, there was an increase to 1.59 in 2024, signaling a moderate rise in leverage after the prior decreases. This mixed pattern suggests shifts in the company’s financing structure or asset-liability management strategy during these years.

Adjusted total assets

Adjusted total assets followed a similar pattern to total assets but with slightly different magnitudes. After increasing from 11,012 million US dollars in 2021 to 14,120 million in 2022, there was a decrease to 13,444 million in 2023. Subsequently, adjusted total assets surged to 27,316 million in 2024. The close alignment with the reported total assets implies consistent adjustments without major distortions.

Adjusted stockholders’ equity

Adjusted equity grew steadily from 5,674 million US dollars in 2021 to 7,776 million in 2022, 9,797 million in 2023, and finally to 16,997 million in 2024. This progression indicates improved underlying equity figures after adjustments, mirroring the upward trend in reported equity and reinforcing the expectation of strengthened financial position.

Adjusted financial leverage

The adjusted financial leverage ratio saw some variability. It increased from 1.94 in 2021 to 1.82 in 2022, suggesting slightly higher leverage initially. Then it sharply dropped to 1.37 in 2023, before rising again to 1.61 in 2024. The fluctuations reflect changes in the adjusted balance between liabilities and equity, echoing the patterns seen in total and adjusted asset and equity values.

The annual financial data reflects significant fluctuations in the company's profitability and revenues over the four-year period.

Net Income (Loss)

The net income exhibited a declining trend, starting at $6,328 million in 2021 and decreasing substantially to a loss of $714 million by 2024. The decline was steady year-over-year, with a notable sharp drop between 2022 and 2023, followed by a further decline into negative territory in 2024.

Revenues

Revenues showed considerable volatility. They increased dramatically from $7,301 million in 2021 to a peak of $14,123 million in 2022, then declined sharply to $6,047 million in 2023 and further down to $4,259 million in 2024. This pattern indicates a significant contraction in sales or operating scale after 2022.

Reported Net Profit Margin

The reported net profit margin experienced a substantial decrease. It was exceptionally high at 86.67% in 2021, decreased sharply to 34.95% in 2022, and then showed a slight increase to 40% in 2023 before turning negative at -16.76% in 2024, indicating losses relative to revenue in the most recent year.

Adjusted Net Income (Loss)

Adjusted net income also declined over time, going from $6,198 million in 2021 to a loss of $827 million in 2024. This trend mirrors the trajectory of reported net income but with slightly lower values, suggesting certain adjustments reduced profitability further or excluded some special items.

Adjusted Net Profit Margin

The adjusted net profit margin progressed from 84.89% in 2021 down to 25.52% in 2022, followed by an increase to 47.05% in 2023. However, it then dropped significantly to -19.42% in 2024, confirming deteriorating profitability when adjustments are considered.

Overall, the data indicates that the company experienced peak financial performance in 2021-2022, with strong profit margins and revenues. However, from 2022 onward, there is a clear and rapid decline in revenue and profitability leading to losses by 2024, signaling potential operational challenges or market conditions negatively impacting performance.

The financial data reveals several noteworthy trends in the company’s profitability, equity base, and return measures over the four-year period.

Net Income (Loss)

Net income declined progressively each year from a high of 6,328 million USD in 2021 to a loss of 714 million USD in 2024. The trend indicates shrinking profitability, culminating in a negative outcome in the final year.

Stockholders’ Equity

Conversely, stockholders’ equity showed a consistent upward trend, increasing from 5,671 million USD in 2021 to 17,565 million USD in 2024. This reflects accumulation or reinvestment of capital despite declining earnings.

Reported Return on Equity (ROE)

Reported ROE decreased substantially from an exceptionally high 111.59% in 2021 to -4.06% in 2024. This sharp decline corresponds to narrowing net income margins and eventual losses, signaling deteriorating profitability relative to equity.

Adjusted Net Income (Loss)

Adjusted net income similarly declined over the period, from 6,198 million USD in 2021 to a loss of 827 million USD in 2024. The adjusted figures consistently remain slightly below the reported values but follow the same downward trajectory.

Adjusted Stockholders’ Equity

Adjusted stockholders’ equity increased steadily from 5,674 million USD in 2021 to 16,997 million USD in 2024, mirroring the rising trend observed in the reported equity figures.

Adjusted Return on Equity (ROE)

Adjusted ROE showed a downward trend similar to reported ROE, falling from 109.24% in 2021 to -4.87% in 2024. Although slightly lower than the reported ROE, the adjusted ROE reflects the same pattern of declining profitability and eventual losses relative to equity.

Overall, the data depicts a company experiencing strong growth in equity but facing significant challenges in maintaining profitability, as evidenced by the continuous decline in both reported and adjusted net income and ROE. The negative return on equity in the latest year highlights pressing operational or market difficulties impacting shareholder value creation despite the expanding equity base.

The financial data reflects notable trends in profitability, asset base, and return on assets (ROA) over the four-year period. The net income exhibits a clear downward trajectory, starting at a strong profit of 6,328 million US$ in 2021, decreasing significantly to 4,936 million US$ in 2022, further declining to 2,419 million US$ in 2023, and ultimately reporting a loss of 714 million US$ in 2024. This decline indicates worsening operational or market conditions affecting the company’s profitability.

Total assets show a contrasting trend, with growth from 11,009 million US$ in 2021 to 15,468 million US$ in 2022, a slight decrease to 14,376 million US$ in 2023, followed by a sharp increase to 27,894 million US$ in 2024. This substantial rise in assets in 2024 may reflect significant investments or acquisitions, which could be related to the reported net loss in the same year.

Reported ROA follows the net income trend, declining steadily from a high of 57.48% in 2021 to negative territory at -2.56% in 2024. This decline confirms that the company’s asset utilization for generating profit has deteriorated over the period.

The adjusted figures provide a similar narrative but with more conservative profit estimates. Adjusted net income begins at 6,198 million US$ in 2021, decreases to 3,604 million US$ in 2022, then slightly improves to 2,845 million US$ in 2023, before again turning negative at -827 million US$ in 2024. Adjusted total assets show growth from 11,012 million US$ in 2021 to 14,120 million US$ in 2022, then a modest decrease to 13,444 million US$ in 2023, followed by a significant rise to 27,316 million US$ in 2024. The adjusted ROA declines from 56.28% in 2021 to -3.03% in 2024, echoing the trend seen in reported ROA but reflecting adjustments made for non-recurring items or other factors.

Profitability Trends

Both reported and adjusted net income reveal a pronounced decline, shifting from substantial profits to losses by 2024, signaling increasing operational challenges or adverse external factors impacting earnings.

Asset Base Developments

The company’s assets grow significantly by the end of the period, especially in 2024, suggesting expansion or capital-intensive initiatives despite declining profitability.

Return on Assets (ROA) Dynamics

The steadily falling ROA percentages, turning negative in the final year, indicate that the company is generating lower returns on its asset investments, highlighting potential inefficiencies or impairments.

Adjusted Financial Measures

Adjusted net income and ROA metrics generally follow the pattern of reported figures but provide a slightly less optimistic view of profitability, reinforcing concerns about the company’s financial health by 2024.

Overall, the data portrays a company facing deteriorating profitability and efficiency in asset utilization, despite an expanding asset base, culminating in net losses and negative returns on assets in the most recent year shown.