Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Expand Energy Corp., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The financial metrics over the analyzed periods exhibit notable fluctuations, reflecting phases of both growth and decline.
- Operating Profit Margin
- The operating profit margin started in negative territory but showed a substantial improvement through 2022 and the first three quarters of 2023, peaking around the 58% mark. However, from late 2023 onward, a sharp decline is evident, culminating in negative margins by early 2025. This pattern indicates an initial phase of operational efficiency gains followed by a deterioration in profitability at the operating level.
- Net Profit Margin
- Mirroring the operating profit margin, the net profit margin improved significantly through 2022 and most of 2023, reaching a peak nearing 69%. After this peak, the margin experienced a downtrend, dropping sharply in the last four quarters analyzed and becoming negative near the start of 2025. This trend suggests increasing costs, expenses, or other factors adversely impacting the company’s overall profitability beyond operating profits.
- Return on Equity (ROE)
- The ROE showed a striking upward trend throughout 2022, reaching a high close to 69% in early 2023. Subsequently, it trended downward sharply, passing through moderate positive returns before turning negative by late 2024 and continuing downward in early 2025. The initial growth period reflects effective use of equity to generate earnings, while the decline signals diminished shareholder value generation in recent quarters.
- Return on Assets (ROA)
- The ROA followed a similar course, with modest beginnings in early 2022, strengthening to nearly 49% by early 2023. A continued sliding trend followed, reducing ROA to negative figures by late 2024 and early 2025. This implies that asset utilization efficiency peaked but eroded substantially over time, suggesting potential issues with asset management or declining returns from invested assets.
Overall, the data presents a narrative of strong performance improvements in profitability and returns throughout 2022 and early 2023, followed by a notable reversal in these metrics. The recent negative margins and returns point to challenges impacting the company's financial health, necessitating attention to operational and financial strategies to restore previous performance levels.
Return on Sales
Return on Investment
Operating Profit Margin
Expand Energy Corp., operating profit margin calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Income (loss) from operations | (268) | (386) | (155) | (294) | 32) | 726) | 79) | 517) | 1,820) | 2,228) | 1,005) | 1,341) | (794) | |||||
| Revenues | 3,210) | 2,244) | 600) | 514) | 901) | 1,276) | 1,406) | 1,260) | 2,105) | 3,136) | 4,193) | 4,013) | 2,781) | |||||
| Profitability Ratio | ||||||||||||||||||
| Operating profit margin1 | -16.79% | -18.85% | 9.39% | 13.25% | 27.96% | 51.96% | 58.73% | 52.09% | 47.55% | 26.76% | 21.87% | 14.56% | -1.64% | |||||
| Benchmarks | ||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||
| Chevron Corp. | 13.48% | 14.63% | 13.22% | 14.15% | 14.73% | 15.37% | 18.06% | 19.98% | 21.92% | 21.42% | 21.03% | 19.86% | 16.73% | |||||
| ConocoPhillips | 26.65% | 26.64% | 28.67% | 29.76% | 29.79% | 30.57% | 30.06% | 31.80% | 33.89% | 36.80% | 37.27% | 37.07% | 36.63% | |||||
| Exxon Mobil Corp. | 14.50% | 14.74% | 14.99% | 15.19% | 15.03% | 16.24% | 17.15% | 19.54% | 21.37% | 19.07% | 18.60% | 15.93% | 12.25% | |||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2025 Calculation
Operating profit margin = 100
× (Income (loss) from operationsQ1 2025
+ Income (loss) from operationsQ4 2024
+ Income (loss) from operationsQ3 2024
+ Income (loss) from operationsQ2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (-268 + -386 + -155 + -294)
÷ (3,210 + 2,244 + 600 + 514)
= -16.79%
2 Click competitor name to see calculations.
Over the presented periods, the company experienced notable fluctuations in its operating performance and revenue generation. Initially, the income from operations showed a significant loss in the first quarter of 2022, followed by a recovery phase marked by positive operational income through most of 2022 and early 2023.
- Income (Loss) from Operations
- The income from operations started with a sizeable loss of 794 million US dollars in March 2022 but improved substantially to positive values through subsequent quarters in 2022, peaking at 2228 million US dollars by the end of that year. In 2023, income from operations displayed volatility: a strong first quarter was followed by sharp declines and moderate recoveries, culminating in a generally weakening trend toward the end of 2023 and early 2024, with notable negative results in the last quarters provided.
- Revenues
- Revenues fluctuated throughout the period, peaking at over 4 billion US dollars in mid-2022 before declining steadily in 2023 to a low point of 514 million US dollars in mid-2024. However, revenues rebounded significantly in late 2024 and early 2025, reaching over 3 billion US dollars by the first quarter of 2025. This pattern indicates varying demand or sales volume over time, with a steep contraction mid-period followed by recovery.
- Operating Profit Margin
- The operating profit margin followed a trajectory that mirrors the income from operations but with greater variability. Starting from a negative margin early in 2022, the margin improved consistently through 2022 to a peak above 58% in the third quarter of 2023. After this high point, margins deteriorated quickly, falling below zero in the last quarters of 2024 and early 2025, reflecting declining profitability despite the partial revenue recovery during this timeframe.
In summary, the company exhibited strong operational performance and profitability during 2022 and into mid-2023, which sharply reversed from late 2023 onward. The decline in operating profits and margins despite a resurgence in revenues at the end of the period suggests rising costs or decreased operational efficiency. The volatility in these key financial indicators highlights a period of instability requiring strategic review and potential operational adjustments.
Net Profit Margin
Expand Energy Corp., net profit margin calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income (loss) | (249) | (399) | (114) | (227) | 26) | 569) | 70) | 391) | 1,389) | 3,580) | 883) | 1,237) | (764) | |||||
| Revenues | 3,210) | 2,244) | 600) | 514) | 901) | 1,276) | 1,406) | 1,260) | 2,105) | 3,136) | 4,193) | 4,013) | 2,781) | |||||
| Profitability Ratio | ||||||||||||||||||
| Net profit margin1 | -15.06% | -16.76% | 7.72% | 10.69% | 21.80% | 40.00% | 68.67% | 58.38% | 52.72% | 34.95% | 20.53% | 13.95% | -1.32% | |||||
| Benchmarks | ||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||
| Chevron Corp. | 8.12% | 9.13% | 8.60% | 9.50% | 10.43% | 10.85% | 12.57% | 14.09% | 15.41% | 15.05% | 15.05% | 14.09% | 11.60% | |||||
| ConocoPhillips | 16.62% | 16.89% | 18.01% | 18.93% | 19.19% | 19.52% | 18.67% | 19.37% | 20.97% | 23.80% | 24.06% | 24.34% | 23.91% | |||||
| Exxon Mobil Corp. | 9.76% | 9.93% | 9.92% | 10.03% | 9.90% | 10.76% | 11.01% | 13.38% | 14.87% | 13.23% | 13.41% | 11.06% | 8.40% | |||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2025 Calculation
Net profit margin = 100
× (Net income (loss)Q1 2025
+ Net income (loss)Q4 2024
+ Net income (loss)Q3 2024
+ Net income (loss)Q2 2024)
÷ (RevenuesQ1 2025
+ RevenuesQ4 2024
+ RevenuesQ3 2024
+ RevenuesQ2 2024)
= 100 × (-249 + -399 + -114 + -227)
÷ (3,210 + 2,244 + 600 + 514)
= -15.06%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibits significant volatility over the observed periods. It started with a substantial loss, then rose sharply into positive territory, peaking in the fourth quarter of 2022. Following this peak, net income showed a declining trend with fluctuations, including a brief recovery in the fourth quarter of 2023. However, the most recent quarters reflect a return to negative values, indicating renewed financial challenges or increased expenses surpassing revenues.
- Revenues
- Revenues demonstrated an initial growth trend, reaching a high point during the third quarter of 2022. Afterward, revenues declined steadily through most of 2023, hitting a low in mid-2024. A notable recovery began in the last two quarters of 2024 and into the first quarter of 2025, indicating possible seasonal factors or operational improvements contributing to increased sales volumes or prices during this period.
- Net Profit Margin
- The net profit margin has mirrored the volatility seen in net income, with a considerable upward trend through 2022, peaking at over 68% in the third quarter of 2023. This indicates highly efficient profitability relative to revenue during that quarter. Subsequently, the margin declined sharply, turning negative in the latter part of 2024 and continuing into early 2025, signaling that despite some revenue recovery, profitability has been adversely affected, potentially due to increased costs or lower pricing power.
- Overall Analysis
- The company experienced a period of strong profitability and revenue growth in 2022, followed by a decline in both revenues and profitability through 2023 and into 2024. The most recent data indicate a challenging environment with negative net income and profit margins, despite a modest rebound in revenues. This suggests that factors such as rising operational costs or reduced margin control have impacted earnings quality and sustainability. Continuous monitoring of cost management and revenue enhancement strategies is essential going forward.
Return on Equity (ROE)
Expand Energy Corp., ROE calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income (loss) | (249) | (399) | (114) | (227) | 26) | 569) | 70) | 391) | 1,389) | 3,580) | 883) | 1,237) | (764) | |||||
| Stockholders’ equity | 17,191) | 17,565) | 10,188) | 10,370) | 10,682) | 10,729) | 10,268) | 10,396) | 10,283) | 9,124) | 6,347) | 5,808) | 5,383) | |||||
| Profitability Ratio | ||||||||||||||||||
| ROE1 | -5.75% | -4.06% | 2.49% | 4.22% | 9.89% | 22.55% | 52.88% | 60.05% | 68.94% | 54.10% | 43.96% | 26.89% | -2.12% | |||||
| Benchmarks | ||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||
| Chevron Corp. | 10.49% | 11.59% | 10.68% | 11.76% | 12.64% | 13.28% | 15.41% | 19.05% | 22.44% | 22.27% | 21.53% | 18.92% | 14.02% | |||||
| ConocoPhillips | 14.63% | 14.27% | 19.94% | 21.48% | 21.47% | 22.23% | 23.46% | 27.20% | 33.15% | 38.91% | 36.79% | 31.69% | 26.12% | |||||
| Exxon Mobil Corp. | 12.63% | 12.77% | 12.55% | 12.73% | 15.98% | 17.58% | 19.09% | 24.48% | 29.54% | 27.04% | 27.87% | 21.97% | 15.24% | |||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2025 Calculation
ROE = 100
× (Net income (loss)Q1 2025
+ Net income (loss)Q4 2024
+ Net income (loss)Q3 2024
+ Net income (loss)Q2 2024)
÷ Stockholders’ equity
= 100 × (-249 + -399 + -114 + -227)
÷ 17,191 = -5.75%
2 Click competitor name to see calculations.
The financial performance over the analyzed periods demonstrates considerable volatility and fluctuating trends in profitability and shareholder returns. Net income figures show significant swings from large losses to substantial profits, followed by a decline into negative territory in the most recent quarters.
- Net Income (Loss)
- The net income started with a loss of $764 million in the first quarter of 2022, then quickly rebounded to positive territory with a peak of $3,580 million by the end of 2022. This was followed by variability with figures declining to as low as $26 million in early 2024 and then further into losses nearing $400 million by the end of 2024 and early 2025. This illustrates a period of high volatility and suggests challenges in maintaining profitability in recent quarters.
- Stockholders’ Equity
- Stockholders’ equity shows a generally upward trend throughout the timeline, increasing from $5,383 million at the start of 2022 to a peak of approximately $17,565 million by late 2024. Despite minor dips, the equity base has largely expanded, which may reflect retained earnings accumulation, capital injections, or other equity-building activities, providing a stronger capital foundation over time.
- Return on Equity (ROE)
- ROE exhibits substantial fluctuation, initially negative at -2.12% and then climbing sharply to reach more than 68% by early 2023, indicating periods of highly efficient use of equity relative to net income. However, from mid-2023 onward, a steadily declining trend is observed, with ROE falling into negative values again by the end of 2024 and early 2025. This declining trend aligns with the reduction in net income and points to weakening profitability relative to the equity base.
In summary, the company's profitability has been highly inconsistent over the analyzed timeframe, with large swings in net income impacting the return on equity. While the equity base has generally strengthened, recent losses and declining ROE suggest challenges in generating sustainable returns. This pattern signals potential operational or market-related pressures that may require strategic adjustments to restore stable profitability and efficient equity utilization.
Return on Assets (ROA)
Expand Energy Corp., ROA calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||||||||||||||
| Net income (loss) | (249) | (399) | (114) | (227) | 26) | 569) | 70) | 391) | 1,389) | 3,580) | 883) | 1,237) | (764) | |||||
| Total assets | 27,934) | 27,894) | 13,392) | 13,608) | 14,018) | 14,376) | 14,248) | 14,429) | 14,591) | 15,468) | 14,089) | 13,899) | 13,293) | |||||
| Profitability Ratio | ||||||||||||||||||
| ROA1 | -3.54% | -2.56% | 1.90% | 3.22% | 7.53% | 16.83% | 38.11% | 43.27% | 48.58% | 31.91% | 19.80% | 11.24% | -0.86% | |||||
| Benchmarks | ||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||
| Chevron Corp. | 6.11% | 6.87% | 6.43% | 7.18% | 7.76% | 8.17% | 9.65% | 11.98% | 13.98% | 13.76% | 13.15% | 11.26% | 8.23% | |||||
| ConocoPhillips | 7.68% | 7.53% | 10.29% | 11.13% | 11.10% | 11.42% | 11.96% | 14.43% | 17.32% | 19.91% | 19.04% | 16.98% | 13.78% | |||||
| Exxon Mobil Corp. | 7.34% | 7.43% | 7.30% | 7.41% | 8.68% | 9.57% | 10.24% | 13.41% | 15.89% | 14.29% | 14.01% | 10.59% | 7.27% | |||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q1 2025 Calculation
ROA = 100
× (Net income (loss)Q1 2025
+ Net income (loss)Q4 2024
+ Net income (loss)Q3 2024
+ Net income (loss)Q2 2024)
÷ Total assets
= 100 × (-249 + -399 + -114 + -227)
÷ 27,934 = -3.54%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibited substantial volatility over the observed periods. Initially, a significant loss of 764 million USD was recorded, followed by a steep rebound to positive earnings near or above 1 billion USD in the subsequent quarters of 2022, peaking at 3.58 billion USD at the end of the year. However, starting from early 2023, net income experienced a general declining trend with frequent fluctuations, including multiple quarters of negative results in 2024 and early 2025. This pattern indicates potential instability in profitability or external factors impacting earnings.
- Total Assets
- Total assets demonstrated gradual growth from Q1 2022 through Q4 2023, rising from approximately 13.3 billion USD to about 14.4 billion USD. However, a pronounced drop occurred from early 2024 through Q3 2024, where assets decreased steadily to roughly 13.4 billion USD. Notably, a sudden and significant increase took place by Q4 2024, where assets nearly doubled to around 27.9 billion USD, maintaining a similar level into early 2025. This abrupt increase suggests possible asset acquisition, revaluation, or restructuring events providing substantial changes in the company’s asset base.
- Return on Assets (ROA)
- ROA mirrored the profitability fluctuations, initially showing negative returns but rapidly increasing to a peak of approximately 48.6% in Q1 2023. This strong return trend deteriorated steadily through successive quarters, falling consistently into positive but progressively lower figures throughout 2023 and 2024, eventually turning negative again by Q4 2024 and early 2025. The declining ROA, especially in conjunction with net income losses and the considerable asset base changes, highlights challenges in generating efficient earnings from the company’s assets in recent periods.
- Overall Summary
- The company’s financial performance across the observed timeline was characterized by high earnings volatility, a transient period of strong profitability, followed by a marked decline. Total asset levels were relatively stable initially, then experienced a sharp increase likely linked to significant corporate actions or asset transactions. Correlatively, the ROA illustrates an inability to maintain high asset efficiency, particularly during periods following substantial asset base expansion. These trends suggest potential operational challenges or strategic shifts impacting earnings sustainability and asset utilization effectiveness.