Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
Expand Energy Corp., long-term (investment) activity ratios
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).
A comprehensive review of the investment activity ratios reveals a consistent pattern of initial improvement followed by a sharp and sustained decline across all efficiency metrics from 2022 through 2024.
- Fixed Asset Utilization
- The net fixed asset turnover ratio, both excluding and including right-of-use assets, experienced an increase between 2021 and 2022, peaking at 1.26 and 1.25 respectively. However, a significant deterioration occurred thereafter, with the ratios falling to 0.60 in 2023 and further collapsing to 0.18 by the end of 2024. This indicates a marked decrease in the effectiveness of fixed assets in generating revenue.
- Total Asset Efficiency
- Total asset turnover mirrored the trend of fixed assets, rising from 0.66 in 2021 to a peak of 0.91 in 2022. A steep downward trajectory followed, with the ratio dropping to 0.42 in 2023 and reaching a low of 0.15 in 2024. This trend suggests a substantial reduction in overall asset productivity over the final two years of the period.
- Equity Productivity
- Equity turnover showed the highest initial values, peaking at 1.55 in 2022 from 1.29 in 2021. This metric subsequently declined sharply to 0.56 in 2023 and 0.24 in 2024, reflecting a diminished capacity to generate sales relative to the shareholders' equity base.
The synchronized decline across all four ratios suggests a systemic reduction in operational efficiency or a significant expansion of the asset and equity base that has not been matched by proportional revenue growth.
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Net Fixed Asset Turnover
Expand Energy Corp., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Property and equipment, net | 24,282) | 10,097) | 11,187) | 8,802) | |
| Long-term Activity Ratio | |||||
| Net fixed asset turnover1 | 0.18 | 0.60 | 1.26 | 0.83 | |
| Benchmarks | |||||
| Net Fixed Asset Turnover, Competitors2 | |||||
| Chevron Corp. | 1.31 | 1.28 | 1.64 | 1.06 | |
| ConocoPhillips | 0.58 | 0.80 | 1.21 | 0.71 | |
| ExxonMobil Holdings Corp. | 1.15 | 1.56 | 1.95 | 1.28 | |
| Net Fixed Asset Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 1.09 | 1.34 | 1.73 | 1.12 | |
| Net Fixed Asset Turnover, Industry | |||||
| Energy | 1.15 | 1.39 | 1.77 | 1.15 | |
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 2024 Calculation
Net fixed asset turnover = Revenues ÷ Property and equipment, net
= 4,259 ÷ 24,282 = 0.18
2 Click competitor name to see calculations.
The net fixed asset turnover for Expand Energy Corp. exhibits a volatile trajectory over the analyzed period, characterized by a peak in efficiency during 2022 followed by a precipitous decline through 2024. The company's capacity to generate revenue relative to its investment in fixed assets has deteriorated significantly, indicating a sharp decrease in asset productivity.
- Revenue Trajectory
- Revenues experienced a substantial surge in 2022, reaching 14,123 million US$, but subsequently entered a period of sharp contraction. By December 31, 2024, revenues declined to 4,259 million US$, representing a significant reduction from the 2022 peak.
- Fixed Asset Investment
- Property and equipment, net, remained relatively stable between 2021 and 2023, fluctuating between 8,802 million and 11,187 million US$. However, 2024 saw an aggressive increase in fixed assets, which rose to 24,282 million US$, more than doubling the asset base from the previous year.
- Net Fixed Asset Turnover Analysis
- The turnover ratio improved from 0.83 in 2021 to 1.26 in 2022, coinciding with the peak in revenues. This trend reversed sharply thereafter, with the ratio falling to 0.60 in 2023 and collapsing to 0.18 by the end of 2024. The drastic decline in 2024 is attributable to the simultaneous effect of falling revenues and a massive expansion in the net fixed asset base, suggesting a period of significant underutilization of capital investments.
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Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Expand Energy Corp., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Property and equipment, net | 24,282) | 10,097) | 11,187) | 8,802) | |
| Operating lease ROU assets | 145) | 99) | 119) | 38) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 24,427) | 10,196) | 11,306) | 8,840) | |
| Long-term Activity Ratio | |||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 0.17 | 0.59 | 1.25 | 0.83 | |
| Benchmarks | |||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | |||||
| Chevron Corp. | 1.26 | 1.24 | 1.59 | 1.03 | |
| ConocoPhillips | 0.57 | 0.79 | 1.20 | 0.70 | |
| ExxonMobil Holdings Corp. | 1.13 | 1.51 | 1.89 | 1.24 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | |||||
| Oil, Gas & Consumable Fuels | 1.07 | 1.30 | 1.68 | 1.09 | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | |||||
| Energy | 1.12 | 1.35 | 1.72 | 1.12 | |
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 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Property and equipment, net (including operating lease, right-of-use asset)
= 4,259 ÷ 24,427 = 0.17
2 Click competitor name to see calculations.
An analysis of the investment activity from 2021 through 2024 reveals a significant divergence between revenue generation and fixed asset accumulation, resulting in a marked decline in the efficiency of long-term asset utilization.
- Revenue Trends
- Revenues experienced a substantial surge in 2022, peaking at 14,123 million US$. However, this growth was not sustained, with revenues decreasing to 6,047 million US$ in 2023 and further declining to 4,259 million US$ by the end of 2024.
- Fixed Asset Investment
- Net property and equipment, inclusive of right-of-use assets, showed a general upward trend over the four-year period. After a moderate increase between 2021 and 2022 and a slight contraction in 2023, the asset base expanded aggressively in 2024, rising to 24,427 million US$, more than double the 2023 valuation.
- Net Fixed Asset Turnover Analysis
- The net fixed asset turnover ratio peaked at 1.25 in 2022, reflecting the highest level of asset productivity during the period analyzed. This was followed by a steady deterioration, with the ratio falling to 0.59 in 2023 and collapsing to 0.17 in 2024. This trend signifies a severe reduction in the company's ability to generate sales from its fixed asset investments.
The combination of precipitously declining revenues and a massive expansion of the fixed asset base in 2024 has led to a critical drop in turnover efficiency. The data suggests that recent capital expenditures or asset acquisitions have not yet yielded corresponding revenue growth, leading to an underutilization of the company's long-term investment base.
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Total Asset Turnover
Expand Energy Corp., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Total assets | 27,894) | 14,376) | 15,468) | 11,009) | |
| Long-term Activity Ratio | |||||
| Total asset turnover1 | 0.15 | 0.42 | 0.91 | 0.66 | |
| Benchmarks | |||||
| Total Asset Turnover, Competitors2 | |||||
| Chevron Corp. | 0.75 | 0.75 | 0.91 | 0.65 | |
| ConocoPhillips | 0.45 | 0.59 | 0.84 | 0.51 | |
| ExxonMobil Holdings Corp. | 0.75 | 0.89 | 1.08 | 0.82 | |
| Total Asset Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 0.71 | 0.80 | 0.99 | 0.71 | |
| Total Asset Turnover, Industry | |||||
| Energy | 0.71 | 0.79 | 0.97 | 0.71 | |
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 2024 Calculation
Total asset turnover = Revenues ÷ Total assets
= 4,259 ÷ 27,894 = 0.15
2 Click competitor name to see calculations.
The total asset turnover ratio demonstrates a significant declining trend over the observed period. Initially, the ratio increased before experiencing a substantial decrease.
- Total Asset Turnover Trend
- In 2021, the total asset turnover ratio was 0.66. This value increased to 0.91 in 2022, indicating improved efficiency in utilizing assets to generate revenue. However, a marked decline followed, with the ratio decreasing to 0.42 in 2023 and further dropping to 0.15 in 2024. This represents a considerable reduction in the company’s ability to generate sales from its asset base.
The increase in the ratio from 2021 to 2022 suggests that the company became more effective at converting its investments in assets into revenue during that period. The subsequent and dramatic decrease in the ratio from 2022 to 2024 indicates a weakening relationship between revenue and total assets. This could be due to a number of factors, including a decrease in sales, an increase in assets, or a combination of both.
- Revenue and Asset Relationship
- Revenues peaked in 2022 at US$14,123 million, coinciding with the highest total asset turnover ratio. Following 2022, revenues decreased to US$6,047 million in 2023 and further to US$4,259 million in 2024. Simultaneously, total assets increased significantly from US$15,468 million in 2022 to US$27,894 million in 2024. This divergence between declining revenue and increasing assets is a primary driver of the observed decline in the total asset turnover ratio.
The substantial decrease in the ratio in 2024 warrants further investigation. The company appears to be investing in assets that are not yet translating into proportional revenue gains, or existing assets are underperforming. This trend could signal inefficiencies in asset management or a broader issue with sales and marketing effectiveness.
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Equity Turnover
Expand Energy Corp., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Stockholders’ equity | 17,565) | 10,729) | 9,124) | 5,671) | |
| Long-term Activity Ratio | |||||
| Equity turnover1 | 0.24 | 0.56 | 1.55 | 1.29 | |
| Benchmarks | |||||
| Equity Turnover, Competitors2 | |||||
| Chevron Corp. | 1.27 | 1.22 | 1.48 | 1.12 | |
| ConocoPhillips | 0.84 | 1.14 | 1.64 | 1.01 | |
| ExxonMobil Holdings Corp. | 1.29 | 1.63 | 2.04 | 1.64 | |
| Equity Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 1.22 | 1.42 | 1.77 | 1.35 | |
| Equity Turnover, Industry | |||||
| Energy | 1.24 | 1.43 | 1.76 | 1.36 | |
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 2024 Calculation
Equity turnover = Revenues ÷ Stockholders’ equity
= 4,259 ÷ 17,565 = 0.24
2 Click competitor name to see calculations.
The financial performance from 2021 to 2024 is characterized by a severe deterioration in capital efficiency, as evidenced by the sharp decline in the equity turnover ratio. While the company initially showed an improvement in its ability to generate revenue from shareholder equity, this trend reversed abruptly after 2022, leading to a state of significant underutilization of the equity base by the end of 2024.
- Revenue Trends
- Revenues experienced extreme volatility, peaking in 2022 at 14,123 million US dollars before entering a period of steep contraction. By December 31, 2024, revenues fell to 4,259 million US dollars, representing a reduction of approximately 70% from the 2022 peak and a 42% decrease compared to 2021 levels.
- Stockholders' Equity Growth
- In contrast to the revenue trend, stockholders' equity demonstrated consistent and aggressive growth throughout the period. The equity base expanded from 5,671 million US dollars in 2021 to 17,565 million US dollars in 2024, marking a total increase of approximately 209%.
- Equity Turnover Analysis
- The equity turnover ratio, which measures the efficiency of using equity to generate sales, rose from 1.29 in 2021 to a peak of 1.55 in 2022. However, the subsequent years saw a precipitous drop to 0.56 in 2023 and further down to 0.24 in 2024. This downward trajectory is the result of a compounding effect: revenues decreased sharply while the equity base expanded, indicating that each dollar of equity produced significantly less revenue over time.
The divergence between the growing equity base and the shrinking revenue stream suggests a substantial decline in investment productivity. The current ratio of 0.24 indicates that the company is utilizing its available equity far less effectively than in previous years, signaling a potential misalignment between the scale of the company's capital structure and its current operational output.
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