Expand Energy Corp. (NASDAQ:EXE)

Net Fixed Asset Turnover

The net fixed asset turnover ratio begins recording data from the quarter ending March 31, 2021, showing a value of 0.83 and then exhibits a decreasing trend in the first half of 2022, dipping to 0.74 in June. Subsequently, it improves consistently through the remainder of 2022, reaching a peak of 1.28 in June 2023. From this peak, a marked and steady decline is observed, with the ratio falling to 0.18 by the end of 2024. A minor recovery is visible in the first quarter of 2025, rising slightly to 0.27.

Total Asset Turnover

The total asset turnover shows a similar pattern to the net fixed asset turnover, starting at 0.66 in March 2021. The ratio fluctuates moderately in 2021 and 2022 but generally increases to a local high of 0.92 in June 2023. From there, a steady downward trend is evident, with the ratio decreasing progressively to 0.15 by March 2025. The decline is more pronounced from late 2023 onward, indicating a reduction in asset utilization efficiency.

Equity Turnover

The equity turnover ratio demonstrates a more volatile and initially rising pattern. Starting at 1.29 in March 2021, it increases sharply to reach a peak of 2.14 by December 2021. After this peak, a consistent and substantial decline occurs, dropping to 1.55 by March 2022, then continuing downward to 0.24 by March 2025. An uptick is observed in the most recent quarter, with the ratio rising slightly to 0.38, suggesting a potential stabilization or early recovery.

Overall Insights

Overall, the financial turnover ratios for net fixed assets, total assets, and equity each show an initial improvement phase followed by a sustained downward trend beginning from mid-2023 or earlier. The declines in turnover ratios could suggest decreasing operational efficiency or challenges in asset utilization and revenue generation relative to equity. The minor recoveries noted towards the end of the data period hint at a possible attempt to stabilize or improve operational performance, but the ratios remain well below their historical peaks.

Revenues

Revenues exhibited significant volatility over the observed periods. Initially, there was a moderate increase from 1,467 million US dollars in March 2021 to a peak of 4,193 million US dollars in September 2022. Following this peak, revenues experienced a sharp decline, reaching a low of 514 million US dollars in June 2024. Subsequently, revenues showed a marked recovery with increases reaching 3,210 million US dollars by March 2025. This pattern indicates fluctuating business performance with periods of strong revenue growth followed by substantial downturns before recovery.

Property and Equipment, Net

The net value of property and equipment ranged between 5,504 million and 24,282 million US dollars throughout the timeline. From March 2021 up to December 2022, the net property and equipment value steadily increased from 5,604 million to a plateau around 11,187 million US dollars. Between December 2023 and March 2025, a substantial rise occurred, with values approximately doubling from around 10,000 million to over 24,000 million US dollars. This indicates significant capital investments or asset acquisitions in the later periods under review.

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrated a generally declining trend throughout the available data points. Starting at 0.83 in December 2021, the ratio peaked at 1.28 in June 2023, indicating efficient use of fixed assets to generate revenue during that time frame. However, thereafter the turnover ratio sharply declined to 0.18 by March 2025. This decline signifies reduced efficiency in generating revenue from fixed assets, possibly due to the large increase in fixed assets without proportionate revenue growth during the same period.

The quarterly financial data shows varying trends in revenues, total assets, and total asset turnover over the period from March 2021 to March 2025.

Revenues

Revenues exhibited significant volatility throughout the observed periods. Initially, revenues fluctuated moderately between approximately 1,400 and 2,600 million US dollars in 2021. There was a notable increase reaching a peak of over 4,100 million US dollars in the latter half of 2022. However, starting from 2023, revenues sharply declined to below 1,300 million US dollars for three consecutive quarters, hitting a low point of 514 million US dollars in mid-2024. Subsequently, there was a recovery towards the end of the dataset, with revenues rising substantially to 2,244 million and then 3,210 million US dollars in the first quarter of 2025.

Total Assets

Total assets steadily increased from 6,904 million US dollars at the beginning of 2021, reaching nearly 15,500 million US dollars by the end of 2022. This growth indicates consistent asset accumulation. In 2023, total assets showed slight fluctuations but remained relatively stable around the 14,000 million US dollars level. However, a substantial increase occurred again at the end of 2024 and into the first quarter of 2025, with total assets nearly doubling to approximately 27,900 million US dollars. This marks a significant expansion in the asset base during the latest periods.

Total Asset Turnover

Total asset turnover ratios are only available starting from the third quarter of 2021. At that time, the ratio was 0.66 and remained relatively stable around 0.65 to 0.96 until the end of 2022, suggesting efficient use of assets to generate revenues. From 2023 onwards, a clear declining trend is noticeable. The turnover ratio dropped drastically from 0.92 in early 2023 to as low as 0.15 by late 2024, indicating reduced efficiency in asset utilization. There is a slight uptick to 0.24 in the first quarter of 2025, but the ratio remains significantly lower compared to earlier periods.

Overall, the data reflects an initial phase of growth in revenues and assets, followed by significant operational challenges evident from declining revenues and falling asset turnover ratios in 2023 and 2024. The rise in total assets during the later periods, coupled with recovering revenues but continued low asset turnover, suggests the company expanded its asset base without proportional increases in revenue generation efficiency. This pattern may imply potential overinvestment or a lag in translating asset growth into revenue performance during the recent periods.

The analysis of the provided financial data reveals distinct trends in revenues, stockholders’ equity, and equity turnover over the periods from March 2021 through March 2025.

Revenues

Revenues demonstrated significant fluctuations throughout the observed periods. Initial figures showed a moderate level around 1,467 million USD in March 2021, with a slight dip in June 2021. From September 2021, revenues increased notably, peaking in June and September 2022 at over 4,000 million USD. However, from December 2022 onward, there was a sharp decline, reaching a low of 514 million USD in June 2024. A partial recovery occurred towards the end of the period, with revenues rising to 3,210 million USD by March 2025. This volatility suggests periods of strong sales performance contrasted by intervals of reduced activity or market challenges.

Stockholders’ Equity

Stockholders’ equity exhibited an overall upward trend with some variability. Starting at 3,881 million USD in March 2021, equity decreased somewhat until September 2021, but then increased substantially by December 2021. From March 2022 through December 2022, equity continued to grow, reaching a peak of approximately 9,124 million USD. The following quarters up to December 2023 showed relatively stable equity levels in the range of 10,200 to 10,700 million USD. Subsequently, equity decreased modestly until September 2024 before surging dramatically to 17,565 million USD by December 2024, followed by a slight decline in March 2025. This pattern indicates strong capital growth with intermittent adjustments, potentially due to equity financing, retained earnings, or asset revaluations.

Equity Turnover

Equity turnover ratio data are available from December 2021 onward. Initially, the ratio increased from 1.29 to 2.14 between December 2021 and September 2022, indicating improved efficiency in using equity to generate revenues. After this peak, the ratio declined steadily to a low of 0.24 in December 2024, reflecting reduced revenue generation relative to equity. A slight rebound to 0.38 occurred by March 2025. The diminishing equity turnover despite increasing equity levels suggests that revenue growth did not keep pace with equity expansion, signaling a potential decrease in operational efficiency or a strategic shift toward asset accumulation.