Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Balance Sheet: Assets
- Analysis of Liquidity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2021
- Return on Equity (ROE) since 2021
- Price to Book Value (P/BV) since 2021
- Aggregate Accruals
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Profitability Ratios (Summary)
Expand Energy Corp., profitability ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Return on Sales | |||||
| Operating profit margin | |||||
| Net profit margin | |||||
| Return on Investment | |||||
| Return on equity (ROE) | |||||
| Return on assets (ROA) | |||||
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).
- Operating Profit Margin
- The operating profit margin demonstrates significant volatility over the analyzed period. It increased substantially from 9.64% in 2021 to a peak of 51.96% in 2023, indicating improved operational efficiency and profitability. However, in 2024, the margin sharply declined to -18.85%, revealing a reversal to operational losses.
- Net Profit Margin
- The net profit margin exhibits a high initial value of 86.67% in 2021, followed by a notable decrease to 34.95% in 2022. It then slightly recovered to 40% in 2023 before dropping to a negative figure of -16.76% in 2024. This trend suggests fluctuating overall profitability, with a critical downturn into losses by the latest year.
- Return on Equity (ROE)
- Return on equity reveals a declining trend throughout the period. Starting from an exceptionally high 111.59% in 2021, it decreased markedly to 54.1% in 2022 and further to 22.55% in 2023. By 2024, ROE fell below zero to -4.06%, reflecting a loss relative to shareholders’ equity and deteriorating financial performance.
- Return on Assets (ROA)
- The return on assets follows a consistent declining trajectory. It began at 57.48% in 2021, dropped to 31.91% in 2022, continued decreasing to 16.83% in 2023, and turned negative at -2.56% in 2024. This indicates decreasing effectiveness in asset utilization to generate profits, culminating in asset-related losses.
- Summary
- Overall, the financial performance measures reflect a strong start in 2021 with high profitability and returns. Although there was improvement in the operating profit margin until 2023, other profitability metrics like ROE and ROA showed steady declines over the period. The year 2024 marks a significant downturn, with negative operating and net profit margins as well as negative returns on equity and assets, indicating the company experienced considerable financial challenges or losses during that year.
Return on Sales
Return on Investment
Operating Profit Margin
Expand Energy Corp., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Income (loss) from operations | |||||
| Revenues | |||||
| Profitability Ratio | |||||
| Operating profit margin1 | |||||
| Benchmarks | |||||
| Operating Profit Margin, Competitors2 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum Corp. | |||||
| Operating Profit Margin, Sector | |||||
| Oil, Gas & Consumable Fuels | |||||
| Operating Profit Margin, Industry | |||||
| Energy | |||||
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
Operating profit margin = 100 × Income (loss) from operations ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Income (loss) from operations
- The income from operations showed a significant increase from 704 million USD in 2021 to 3,780 million USD in 2022, indicating strong operational performance during this period. However, in 2023, it decreased to 3,142 million USD and turned into a loss of 803 million USD in 2024, representing a deteriorating operational profitability in the most recent year.
- Revenues
- Revenues nearly doubled from 7,301 million USD in 2021 to 14,123 million USD in 2022, signifying substantial sales growth. This was followed by a sharp decline to 6,047 million USD in 2023 and a further reduction to 4,259 million USD in 2024, reflecting a notable downward trend in revenue generation across the last two years.
- Operating profit margin
- The operating profit margin marked an upward trajectory from 9.64% in 2021 to 26.76% in 2022, and then dramatically increased to 51.96% in 2023, highlighting enhanced efficiency in converting revenues into operating profit. Nonetheless, this positive trend reversed drastically in 2024, with the margin falling to negative 18.85%, indicating an operating loss relative to revenues in that year.
- Overall Analysis
- The data reveals a strong performance peak in 2022 characterized by high revenue growth and improved profit margins. However, subsequent years show a decline in revenues and operating income, culminating in a notable operating loss in 2024. This shift suggests emerging challenges in sustaining profitability and revenue levels, potentially related to market conditions, cost management, or operational factors affecting financial health.
Net Profit Margin
Expand Energy Corp., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | |||||
| Revenues | |||||
| Profitability Ratio | |||||
| Net profit margin1 | |||||
| Benchmarks | |||||
| Net Profit Margin, Competitors2 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum Corp. | |||||
| Net Profit Margin, Sector | |||||
| Oil, Gas & Consumable Fuels | |||||
| Net Profit Margin, Industry | |||||
| Energy | |||||
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 profit margin = 100 × Net income (loss) ÷ Revenues
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net income (loss)
- The net income experienced a significant decline over the analyzed period. It started at 6,328 million USD in 2021 and dropped to 4,936 million USD in 2022. This downward trend continued more sharply in 2023, with net income falling to 2,419 million USD. By 2024, the company reported a net loss of 714 million USD, indicating a negative shift in profitability.
- Revenues
- Revenues showed volatility during the period. Starting at 7,301 million USD in 2021, revenues almost doubled to 14,123 million USD in 2022. However, this was followed by a steep decline to 6,047 million USD in 2023 and a further decrease to 4,259 million USD in 2024, which reflects a significant contraction in sales or operating activity.
- Net profit margin
- The net profit margin mirrored the trends in net income and revenues. It was exceptionally high at 86.67% in 2021, suggesting exceptionally strong profitability relative to revenues. In 2022, the margin sharply decreased to 34.95% and then slightly increased to 40% in 2023. By 2024, the margin turned negative to -16.76%, indicating that the company incurred losses relative to its revenue base.
Return on Equity (ROE)
Expand Energy Corp., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | |||||
| Stockholders’ equity | |||||
| Profitability Ratio | |||||
| ROE1 | |||||
| Benchmarks | |||||
| ROE, Competitors2 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum Corp. | |||||
| ROE, Sector | |||||
| Oil, Gas & Consumable Fuels | |||||
| ROE, Industry | |||||
| Energy | |||||
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
ROE = 100 × Net income (loss) ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- There is a clear downward trend in net income over the four-year period. Starting at a robust 6,328 million US dollars in 2021, net income declined steadily to 4,936 million in 2022 and then sharply to 2,419 million in 2023. By 2024, the company reported a net loss of 714 million US dollars, indicating a significant deterioration in profitability.
- Stockholders’ Equity
- Stockholders’ equity exhibited continuous growth throughout the period. From 5,671 million US dollars in 2021, it increased substantially to 9,124 million in 2022, then further to 10,729 million in 2023, and reached 17,565 million by the end of 2024. This suggests ongoing capital accumulation or retained earnings despite the declining profitability in recent years.
- Return on Equity (ROE)
- The return on equity demonstrates a pronounced decline from an exceptionally high 111.59% in 2021 to 54.1% in 2022, followed by a further drop to 22.55% in 2023. In 2024, ROE turned negative to -4.06%, reflecting the net loss and indicating that shareholder value was not generated in that year.
Return on Assets (ROA)
Expand Energy Corp., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Net income (loss) | |||||
| Total assets | |||||
| Profitability Ratio | |||||
| ROA1 | |||||
| Benchmarks | |||||
| ROA, Competitors2 | |||||
| Chevron Corp. | |||||
| ConocoPhillips | |||||
| Exxon Mobil Corp. | |||||
| Occidental Petroleum Corp. | |||||
| ROA, Sector | |||||
| Oil, Gas & Consumable Fuels | |||||
| ROA, Industry | |||||
| Energy | |||||
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
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income (Loss)
- There is a clear declining trend in net income over the analyzed period. Starting at 6328 million US dollars in 2021, the net income decreased to 4936 million in 2022, further declined to 2419 million in 2023, and finally turned into a loss of 714 million in 2024. This progression indicates increasing profitability challenges over the four years.
- Total Assets
- Total assets showed a mixed trend. Initially, assets grew significantly from 11,009 million US dollars in 2021 to 15,468 million in 2022. However, in 2023, total assets slightly decreased to 14,376 million. Remarkably, in 2024 assets almost doubled to 27,894 million, suggesting substantial asset acquisition or revaluation despite the net loss reported in the same year.
- Return on Assets (ROA)
- ROA declined steadily throughout the period, reflecting reduced efficiency in generating profit from assets. ROA was very high at 57.48% in 2021 but dropped to 31.91% in 2022 and further to 16.83% in 2023. By 2024, ROA turned negative to -2.56%, corresponding with the net loss and indicating that asset utilization did not produce returns and negatively impacted overall profitability.