Expand Energy Corp. (NASDAQ:EXE)

Net Fixed Asset Turnover

The ratio exhibited an upward trend from March 2022 to March 2023, increasing from 0.74 to a peak of 1.28. This suggests improved efficiency in generating revenue from net fixed assets during this period. However, from June 2023 onward, the ratio experienced a consistent decline, reaching a low of 0.18 by December 2024 before a slight recovery to 0.27 in March 2025. The decline indicates a reduced effectiveness in utilizing fixed assets to generate sales in the latter periods.

Total Asset Turnover

This ratio rose steadily from 0.65 in March 2022 to a high of 0.96 by September 2022, indicating improving overall asset utilization. It then fluctuated slightly but maintained levels close to 0.9 until March 2023. Following March 2023, the ratio showed a marked downward trend, falling from 0.74 in June 2023 to a minimum of 0.15 in March 2025, with a minor increase to 0.24 by the end of the observed period. This points to a weakening ability to generate sales from total assets, especially in the later quarters.

Equity Turnover

The equity turnover ratio showed strong growth early on, increasing from 1.6 in March 2022 to a peak of 2.14 in September 2022, reflecting efficient use of shareholder equity to produce revenue. However, a significant decline followed starting in December 2022, with the ratio dropping consistently to 0.24 by December 2024. A modest rebound to 0.38 was observed in March 2025, though still substantially lower than the initial figures. This decline indicates a diminishing rate of revenue generation relative to equity over time.

Summary

Overall, the financial efficiency indicators revealed initial improvements in asset and equity utilization up to early 2023. Post this peak, there is a pronounced and consistent decline across all turnover ratios—net fixed asset turnover, total asset turnover, and equity turnover—suggesting deteriorating operational efficiency and utilization of core resources in generating revenue. This trend may warrant further investigation into asset management and operational strategies moving forward.

The financial data reveals significant fluctuations in revenues, net fixed asset turnover, and a relatively stable yet slightly declining trend in net property and equipment values during most of the periods, with a considerable jump in the final quarters.

Revenues (US$ in millions)

Revenues exhibited considerable volatility over the observed timeframe. The initial period started with moderate revenues at 2,781 million, followed by an increase peaking at 4,193 million in September 2022. A sharp decline ensued through March 2023 to June 2024, reaching a low point of 514 million. However, the final two quarters indicated a robust recovery, surging to 2,244 million and ultimately 3,210 million by March 2025. This pattern reflects a cycle of expansion, contraction, and a subsequent rebound in revenue generation.

Property and Equipment, Net (US$ in millions)

The net value of property and equipment remained relatively stable during the periods from March 2022 through September 2024, fluctuating narrowly between approximately 9,954 million and 11,954 million. Notably, a substantial increase occurred in December 2024 and March 2025, nearly doubling from previous levels to around 24,260 million by March 2025. This pronounced jump suggests significant capital expenditure or asset revaluation late in the timeline.

Net Fixed Asset Turnover (ratio)

The net fixed asset turnover ratio experienced an initial upward trend from 0.74 in March 2022 to a peak of 1.28 in March 2023, indicating improved efficiency in generating revenues from fixed assets. However, from that peak, a steady and marked decline persisted through December 2024, falling to a low of 0.18 before slightly recovering to 0.27. The decreasing trend suggests diminishing asset utilization efficiency, likely influenced by the sharp drop in revenues observed simultaneously and the substantial increase in fixed assets late in the period.

The analysis of the financial trends over the reported periods reveals several notable patterns in the company's operational efficiency and asset utilization.

Revenues

Revenues reached a peak in the third quarter of 2022 at 4,193 million US dollars, followed by a significant decline in subsequent quarters through mid-2024, hitting a low of 514 million US dollars in the second quarter of 2024. However, a recovery phase is observed starting in the third quarter of 2024, with revenues rising sharply to 2,244 million US dollars and further increasing to 3,210 million US dollars by the first quarter of 2025, indicating a potential rebound in sales or market demand.

Total Assets

Total assets generally increased from 13,293 million US dollars at the end of the first quarter in 2022 to a high of approximately 15,468 million US dollars by the end of 2022. There was then a gradual decline through 2023 and mid-2024 down to 13,392 million US dollars, followed by a dramatic increase to around 27,894 million US dollars at the end of 2024 and slight growth thereafter, suggesting significant asset acquisitions or revaluation in late 2024.

Total Asset Turnover

The total asset turnover ratio, measuring how efficiently the company uses its assets to generate revenue, showed a declining trend throughout the periods. It started at 0.65 in early 2022, peaked briefly at 0.96 in the third quarter of 2022, and then decreased continuously to a low of 0.15 by the last quarter of 2024. This downward trajectory indicates reduced efficiency in asset utilization over time, despite the late-stage increase in revenues and total assets. A slight recovery to 0.24 in early 2025 may be early evidence of improved operational efficiency.

In summary, while the company experienced fluctuations and an overall decline in revenue and asset turnover efficiency from mid-2022 through mid-2024, the end of 2024 marks a period of asset growth and revenue recovery. The reduction in asset turnover ratio throughout suggests caution in operational efficiency, despite the recent positive trends in financial scale and sales.

The analyzed data reveals several notable trends in the financial performance and position over the observed periods.

Revenues

Revenues exhibited significant volatility throughout the reported quarters. Starting from a moderate level, revenues peaked in the third quarter of 2022 before experiencing a sharp decline in the first half of 2023. A modest recovery was observed towards the end of 2023 and into early 2024, followed by a substantial increase in the fourth quarter of 2024 and continuing into the first quarter of 2025. This pattern indicates fluctuating demand or operational challenges impacting revenue generation, with a notable resurgence towards the end of the timeline.

Stockholders’ Equity

Stockholders' equity demonstrated a generally upward trajectory with some fluctuations. The equity base grew steadily from the beginning through the end of 2022, reaching a peak in the first quarter of 2023. Subsequently, equity levels maintained stability with minor decreases and increases through 2023 and most of 2024. A significant surge occurred in the fourth quarter of 2024, which continued into the first quarter of 2025, indicating possible capital injections, retained earnings accumulation, or increased asset valuations during this period.

Equity Turnover Ratio

The equity turnover ratio showed a consistent declining trend over the entire period. Initially, the ratio was relatively high, suggesting efficient use of equity to generate revenues. However, from late 2022 onwards, the ratio steadily decreased, reaching its lowest levels in late 2024 before experiencing a slight rebound in the first quarter of 2025. This declining trend implies a reduction in operational efficiency in generating revenues from equity, potentially due to the rapid increase in equity outpacing revenue growth or less effective asset utilization.

Overall, the data indicates that while the company strengthened its equity base significantly, especially toward the end of the observed period, this growth was not immediately matched by proportional revenue increases, resulting in decreased efficiency ratios. The considerable revenue fluctuations suggest varying market or operational conditions impacting financial performance during these quarters.