Expand Energy Corp. (NASDAQ:EXE)

Return on Assets (ROA)

The return on assets exhibits a declining trend over the four-year period. Beginning at a high of 57.48% in 2021, it decreased significantly to 31.91% in 2022 and continued its downward trajectory to 16.83% in 2023. In 2024, ROA turned negative, reaching -2.56%, indicating that the company may have experienced losses relative to its asset base during that year.

Financial Leverage

Financial leverage demonstrated a general decreasing trend from 2021 through 2023, dropping from 1.94 in 2021 to 1.34 in 2023, suggesting a reduction in debt relative to equity or a shift towards less leveraged financing. However, in 2024, this trend reverses slightly with leverage increasing to 1.59, which may reflect renewed reliance on debt or changes in the capital structure during the most recent period.

Return on Equity (ROE)

Return on equity displays a pattern similar to ROA, with a substantial decline in performance over the analyzed years. ROE started at an exceptionally high 111.59% in 2021, then halved to 54.1% in 2022 and dropped further to 22.55% in 2023. By 2024, the company experienced a negative ROE of -4.06%, indicating losses attributable to shareholders’ equity, reflecting deteriorating profitability and possibly increasing financial distress or operational challenges.

Net Profit Margin

The net profit margin shows a significant decrease over the four-year period. Initially, it was very high at 86.67% in 2021, declining sharply to 34.95% in 2022. It slightly improved to 40% in 2023 but then experienced a considerable drop to -16.76% in 2024, indicating the company incurred losses in the latest year.

Asset Turnover

Asset turnover demonstrated variability with a peak in 2022 at 0.91, suggesting improved efficiency in using assets to generate revenue compared to 0.66 in 2021. However, it declined substantially thereafter, falling to 0.42 in 2023 and further to 0.15 in 2024. This indicates a weakening in asset utilization efficiency over the last two years.

Financial Leverage

Financial leverage decreased from 1.94 in 2021 to 1.7 in 2022, and further to 1.34 in 2023, signifying a reduction in reliance on debt financing during this period. However, in 2024, it increased again to 1.59, suggesting a moderate return to higher leverage. Overall, leverage remains moderate but with some fluctuation.

Return on Equity (ROE)

Return on equity reflected a declining trend throughout the period. Starting extremely high at 111.59% in 2021, it decreased markedly to 54.1% in 2022 and continued to fall to 22.55% in 2023. In 2024, ROE turned negative, reaching -4.06%, which aligns with the negative net profit margin observed that year, indicating diminished profitability and shareholder value.

The financial data reveals several notable trends and fluctuations across the analyzed periods. The tax burden ratio exhibits volatility, initially increasing from 1.02 in 2021 to 1.35 in 2022, before declining sharply to 0.78 in 2023. However, the value for 2024 is missing, which limits further assessment of this trajectory.

The interest burden ratio shows relative stability with minor variation. It decreases slightly from 0.99 in 2021 to 0.96 in 2022 and then rises marginally to 0.97 in 2023, indicating consistent management of interest expenses relative to earnings before interest and taxes over the observed years.

EBIT margin reflects significant volatility. There is a steep decline from a high margin of 86.37% in 2021 to 26.98% in 2022, followed by a recovery to 53.27% in 2023. However, a sharp negative margin of -16.86% is recorded in 2024, signaling operational difficulties or losses in that year.

Asset turnover ratio trends downward overall. It rises from 0.66 in 2021 to 0.91 in 2022, which might suggest improved efficiency; however, this is followed by a marked decline to 0.42 in 2023 and further to 0.15 in 2024, indicating decreasing asset utilization efficiency over recent years.

Financial leverage decreases from 1.94 in 2021 to 1.7 in 2022 and further down to 1.34 in 2023, before increasing again to 1.59 in 2024. This indicates a reduction in reliance on debt financing until 2023, with a moderate increase in leverage in the latest period.

Return on equity (ROE) demonstrates a declining trend throughout the observed period. ROE decreases significantly from an exceptionally high 111.59% in 2021 to 54.1% in 2022, then further down to 22.55% in 2023, culminating in a negative return of -4.06% in 2024. This deterioration reflects weakening profitability and diminishing shareholder value.

Summary of Key Patterns:

The company experienced a general decline in profitability and operational efficiency, as evidenced by the downward trends in EBIT margin, asset turnover, and ROE. Tax burden and financial leverage ratios fluctuated, reflecting changes in tax effects and capital structure strategy. Interest burden remained relatively stable, indicating control over interest expense. The negative EBIT margin and ROE in 2024 highlight emerging challenges potentially impacting financial health.

The data suggests a need for investigation into the factors driving the negative results in 2024, with attention to improving operational performance and asset utilization to restore profitability and shareholder returns.

Net Profit Margin

The net profit margin exhibits a declining trend over the observed periods, starting from a high of 86.67% in 2021 and decreasing sharply to 34.95% in 2022. It shows a slight recovery to 40% in 2023, followed by a significant deterioration to a negative margin of -16.76% in 2024. This suggests increasing difficulties in maintaining profitability relative to revenues over time, culminating in a loss by the last period.

Asset Turnover

The asset turnover ratio initially increases from 0.66 in 2021 to a peak of 0.91 in 2022, indicating more efficient use of assets to generate sales during this period. However, a pronounced decline follows, falling to 0.42 in 2023 and further down to 0.15 in 2024. The downward trend signals diminishing efficiency in asset utilization to produce revenue as time progresses.

Return on Assets (ROA)

Return on assets shows a consistent downward trajectory throughout the periods. Starting at a strong 57.48% in 2021, it drops to 31.91% in 2022, then halves to 16.83% in 2023, and turns negative to -2.56% by 2024. This pattern reflects declining profitability generated from the company's asset base, aligning with the decreases seen in both net profit margin and asset turnover.

The financial data over the analyzed periods reveal notable fluctuations across various performance ratios, indicating changes in operational efficiency, profitability, and overall financial health.

Tax Burden

The tax burden ratio showed an increase from 1.02 in 2021 to 1.35 in 2022, suggesting higher tax expenses relative to pre-tax income in that period. This ratio then declined sharply to 0.78 in 2023, indicating a reduced tax impact on earnings. The absence of data for 2024 precludes further assessment for that year.

Interest Burden

The interest burden ratio remained relatively stable, with a slight decline from 0.99 in 2021 to 0.96 in 2022, and a marginal increase to 0.97 in 2023. This indicates consistent interest expense levels relative to EBIT during these years, with no significant changes observed.

EBIT Margin

The EBIT margin experienced considerable volatility. It decreased dramatically from a robust 86.37% in 2021 to 26.98% in 2022, reflecting a substantial drop in operational profitability. A partial recovery occurred in 2023, with the margin increasing to 53.27%. However, in 2024, the margin turned negative (-16.86%), signaling operational losses and potential challenges in controlling costs or generating sufficient revenue.

Asset Turnover

Asset turnover improved from 0.66 in 2021 to 0.91 in 2022, indicating better utilization of assets to generate sales. Following this peak, the ratio declined sharply to 0.42 in 2023 and further to 0.15 in 2024, pointing to deteriorating efficiency in asset usage over the latter periods.

Return on Assets (ROA)

The ROA showed a downward trend over the period. Starting at a strong 57.48% in 2021, it declined to 31.91% in 2022 and further to 16.83% in 2023. By 2024, ROA had turned negative (-2.56%), indicating that the company was not generating profit relative to its asset base and possibly incurring losses.

Overall, the data depict a company facing increasing operational and profitability challenges from 2021 to 2024. While initial years show relatively strong performance metrics, subsequent years reveal declines in efficiency, profitability, and returns, culminating in negative profitability indicators by 2024. This trend suggests a need for strategic review and potentially operational restructuring to restore financial health.

Tax Burden

The tax burden ratio exhibited volatility over the observed periods. It increased from 1.02 in 2021 to 1.35 in 2022, indicating a rise in tax expenses relative to pre-tax income. Subsequently, it declined significantly to 0.78 in 2023, suggesting a reduction in tax expenses or enhanced tax efficiency during that year. Data for 2024 is not available.

Interest Burden

The interest burden ratio remained relatively stable throughout the periods, with a slight decrease from 0.99 in 2021 to 0.96 in 2022, followed by a marginal increase to 0.97 in 2023. This stability suggests consistent management of interest expenses relative to earnings before interest and taxes. The 2024 figure is missing.

EBIT Margin

The EBIT margin showed considerable fluctuation. It started at a high level of 86.37% in 2021 but sharply declined to 26.98% in 2022, recovering somewhat to 53.27% in 2023. However, in 2024, the EBIT margin turned negative, reaching -16.86%, indicating operational losses before interest and taxes. This negative margin may point to operational challenges or increased costs in that period.

Net Profit Margin

Net profit margin mirrored the trend seen in EBIT margin. It began exceptionally high at 86.67% in 2021, decreased to 34.95% in 2022, and then showed moderate recovery to 40% in 2023. However, similar to EBIT margin, it became negative in 2024, at -16.76%, suggesting net losses and potential profitability issues.