Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Expand Energy Corp., short-term (operating) 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).
- Receivables Turnover
- The receivables turnover ratio increased significantly from 6.55 in 2021 to a peak of 10.2 in 2023, indicating an improvement in the efficiency of collecting receivables over this period. However, there was a sharp decline to 3.47 in 2024, suggesting a notable slowdown in the collection process during the most recent year.
- Payables Turnover
- The payables turnover ratio remained relatively stable around 23.7 to 23.42 in 2021 and 2022, followed by a marked decrease to 14.23 in 2023, and a further decline to 5.48 in 2024. This trend indicates that the company is taking longer to settle its payables, potentially reflecting extended payment terms or cash flow constraints.
- Working Capital Turnover
- Data for working capital turnover is only available for 2023, with a value of 4.67. The absence of data for other years limits the ability to assess trend patterns or changes over time regarding working capital efficiency.
- Average Receivable Collection Period
- The average collection period for receivables improved from 56 days in 2021 to 36 days in 2023, showing faster collection of receivables. However, there was a pronounced increase to 105 days in 2024, indicating a substantial lengthening in the time taken to collect receivables, which could adversely affect liquidity.
- Average Payables Payment Period
- The average payment period gradually increased from 15 days in 2021 to 26 days in 2023, then sharply jumped to 67 days in 2024. This points to the company delaying payments to suppliers more significantly in the most recent year, which might be a strategy to conserve cash or a reflection of financial stress.
Turnover Ratios
Average No. Days
Receivables Turnover
Expand Energy Corp., receivables 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) | |
| Accounts receivable, net | 1,226) | 593) | 1,438) | 1,115) | |
| Short-term Activity Ratio | |||||
| Receivables turnover1 | 3.47 | 10.20 | 9.82 | 6.55 | |
| Benchmarks | |||||
| Receivables Turnover, Competitors2 | |||||
| Chevron Corp. | 9.35 | 9.88 | 11.52 | 8.45 | |
| ConocoPhillips | 8.27 | 10.28 | 11.09 | 7.00 | |
| Exxon Mobil Corp. | 9.62 | 11.05 | 12.14 | 10.29 | |
| Occidental Petroleum Corp. | 7.58 | 8.84 | 8.56 | 6.17 | |
| Receivables Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 9.29 | 10.46 | 11.59 | 8.99 | |
| Receivables Turnover, Industry | |||||
| Energy | 8.77 | 9.73 | 10.85 | 8.59 | |
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
Receivables turnover = Revenues ÷ Accounts receivable, net
= 4,259 ÷ 1,226 = 3.47
2 Click competitor name to see calculations.
- Revenue Trends
- The revenues demonstrate significant fluctuations over the four-year period. From 2021 to 2022, revenues nearly doubled, increasing from 7,301 million US dollars to 14,123 million US dollars. However, this peak was followed by a substantial decline; in 2023, revenues dropped sharply to 6,047 million US dollars and continued decreasing in 2024 to 4,259 million US dollars. This pattern indicates a pronounced volatility in sales or contract execution, with a dramatic rise succeeded by a steep fall.
- Accounts Receivable, Net
- The net accounts receivable figures show some variability, but not consistently aligned with the revenue trends. From 2021 to 2022, the receivables rose from 1,115 million to 1,438 million US dollars, in line with the revenue increase. The value then declined significantly in 2023 to 593 million US dollars but surged back to 1,226 million US dollars in 2024. The increase in 2024, despite falling revenues, suggests potential collection delays or changes in credit policies.
- Receivables Turnover Ratio
- The receivables turnover ratio indicates the speed at which the company collects its receivables. A general increasing trend from 6.55 in 2021 to 10.2 in 2023 is apparent, implying increasingly efficient collections during this period. However, a sharp decline to 3.47 in 2024 reveals a marked slowdown in collections. This coincides with the rise in accounts receivable despite declining revenues, suggesting decreased collection efficiency or potential credit risk concerns in 2024.
- Overall Analysis
- The combination of data points to a company experiencing considerable instability in both operational outcomes and financial management. While the initial growth phase showed improving revenue and collection efficiency, the subsequent years reveal operational challenges. The reversal in revenue from a peak in 2022 to significantly lower levels by 2024, coupled with deteriorating turnover ratio and swelling receivables, may signal problems with customer creditworthiness, billing, or market demand. Close monitoring of receivables management and investigation into the underlying causes of revenue decline is warranted.
Payables Turnover
Expand Energy Corp., payables 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) | |
| Accounts payable | 777) | 425) | 603) | 308) | |
| Short-term Activity Ratio | |||||
| Payables turnover1 | 5.48 | 14.23 | 23.42 | 23.70 | |
| Benchmarks | |||||
| Payables Turnover, Competitors2 | |||||
| Chevron Corp. | 8.76 | 9.64 | 12.44 | 9.46 | |
| ConocoPhillips | 9.14 | 11.04 | 12.84 | 9.16 | |
| Exxon Mobil Corp. | 9.39 | 10.71 | 12.02 | 10.39 | |
| Occidental Petroleum Corp. | 7.12 | 7.75 | 9.09 | 6.66 | |
| Payables Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 9.04 | 10.20 | 12.04 | 9.70 | |
| Payables Turnover, Industry | |||||
| Energy | 8.91 | 9.88 | 11.67 | 9.48 | |
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
Payables turnover = Revenues ÷ Accounts payable
= 4,259 ÷ 777 = 5.48
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited significant volatility over the observed periods. Starting at 7,301 million US dollars in 2021, revenues nearly doubled by the end of 2022, reaching 14,123 million US dollars. However, this peak was followed by a sharp decline in the subsequent years, with revenues decreasing to 6,047 million in 2023 and further dropping to 4,259 million by the end of 2024. This pattern indicates a highly unstable revenue stream, with a substantial rise followed by a pronounced contraction.
- Accounts Payable
- Accounts payable also showed variability across the years. The balance increased from 308 million US dollars in 2021 to 603 million in 2022, suggesting growing obligations. In 2023, there was a reduction to 425 million, but the figure then rose again significantly to 777 million by 2024. This fluctuating trend demonstrates inconsistency in the company's short-term liabilities management, with a notable increase at the end of the period.
- Payables Turnover
- The payables turnover ratio declined steadily over the time frame, starting at 23.7 in 2021 and slightly decreasing to 23.42 in 2022. A more pronounced decline occurred in 2023 with the ratio falling to 14.23 and further dropping sharply to 5.48 in 2024. This trend suggests that the company is taking an increasingly longer time to settle its payables, indicating potential changes in payment policies, liquidity challenges, or supplier negotiation strategies.
Working Capital Turnover
Expand Energy Corp., working capital turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Current assets | 1,997) | 2,609) | 2,698) | 2,103) | |
| Less: Current liabilities | 3,123) | 1,314) | 2,704) | 2,447) | |
| Working capital | (1,126) | 1,295) | (6) | (344) | |
| Revenues | 4,259) | 6,047) | 14,123) | 7,301) | |
| Short-term Activity Ratio | |||||
| Working capital turnover1 | — | 4.67 | — | — | |
| Benchmarks | |||||
| Working Capital Turnover, Competitors2 | |||||
| Chevron Corp. | 82.20 | 22.20 | 14.61 | 22.40 | |
| ConocoPhillips | 15.54 | 12.98 | 13.30 | 11.37 | |
| Exxon Mobil Corp. | 15.65 | 10.70 | 13.95 | 110.19 | |
| Occidental Petroleum Corp. | — | — | 32.45 | 13.76 | |
| Working Capital Turnover, Sector | |||||
| Oil, Gas & Consumable Fuels | 22.65 | 14.09 | 14.48 | 32.79 | |
| Working Capital Turnover, Industry | |||||
| Energy | 19.79 | 13.51 | 14.21 | 29.83 | |
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
Working capital turnover = Revenues ÷ Working capital
= 4,259 ÷ -1,126 = —
2 Click competitor name to see calculations.
- Working Capital
- The working capital figures exhibit significant volatility over the observed periods. Initially, there is a large negative working capital of -344 million US dollars at the end of 2021, which sharply improves to a near-neutral position of -6 million US dollars at the end of 2022. This positive trend continues dramatically into 2023, with working capital increasing to 1295 million US dollars, indicating a substantial improvement in the liquidity position of the company during that year. However, this trend reverses markedly in 2024, when working capital plunges to a negative value of -1126 million US dollars, suggesting possible liquidity challenges or increased current liabilities relative to current assets.
- Revenues
- Revenue results demonstrate considerable fluctuations across the analyzed years. From 2021 to 2022, revenues nearly double from 7301 million US dollars to 14123 million US dollars, representing robust top-line growth. However, this upward momentum does not sustain, as revenues drop sharply in 2023 to 6047 million US dollars and further decline in 2024 to 4259 million US dollars. This pattern indicates instability in the company’s sales or operational environment, with a peak in 2022 followed by significant contraction in subsequent years.
- Working Capital Turnover
- Working capital turnover data is only available for the year ending 2023, reporting a ratio of 4.67. This metric suggests that in 2023, for every dollar of working capital, the company generated 4.67 dollars in revenues, implying efficient utilization of working capital during that period. However, the absence of comparable data for other periods limits the capacity to assess longer-term operational efficiency trends related to working capital management.
Average Receivable Collection Period
Expand Energy Corp., average receivable collection period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Receivables turnover | 3.47 | 10.20 | 9.82 | 6.55 | |
| Short-term Activity Ratio (no. days) | |||||
| Average receivable collection period1 | 105 | 36 | 37 | 56 | |
| Benchmarks (no. days) | |||||
| Average Receivable Collection Period, Competitors2 | |||||
| Chevron Corp. | 39 | 37 | 32 | 43 | |
| ConocoPhillips | 44 | 36 | 33 | 52 | |
| Exxon Mobil Corp. | 38 | 33 | 30 | 35 | |
| Occidental Petroleum Corp. | 48 | 41 | 43 | 59 | |
| Average Receivable Collection Period, Sector | |||||
| Oil, Gas & Consumable Fuels | 39 | 35 | 31 | 41 | |
| Average Receivable Collection Period, Industry | |||||
| Energy | 42 | 37 | 34 | 43 | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 3.47 = 105
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio shows a notable increase from 6.55 in 2021 to 10.2 in 2023, indicating improved efficiency in collecting receivables during this period. However, there is a significant decline to 3.47 in 2024, suggesting a substantial slowdown in receivables collection efficiency in the most recent year.
- Average Receivable Collection Period
- The average receivable collection period decreases steadily from 56 days in 2021 to 36 days in 2023, reinforcing the trend of improved collection practices and quicker cash conversion. Conversely, in 2024, this figure increases sharply to 105 days, which aligns with the drop in receivables turnover and indicates a prolonged duration for collecting outstanding receivables.
- Overall Analysis
- From 2021 through 2023, the company exhibited positive improvements in receivables management, achieving higher turnover ratios and shorter collection periods, which would favor liquidity and operational efficiency. The reversal of this trend in 2024, marked by a decreased turnover and extended collection period, may raise concerns regarding credit control, customer payment behavior, or potential internal challenges affecting cash flow. This change warrants closer investigation to determine underlying causes and implement corrective measures.
Average Payables Payment Period
Expand Energy Corp., average payables payment period calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|
| Selected Financial Data | |||||
| Payables turnover | 5.48 | 14.23 | 23.42 | 23.70 | |
| Short-term Activity Ratio (no. days) | |||||
| Average payables payment period1 | 67 | 26 | 16 | 15 | |
| Benchmarks (no. days) | |||||
| Average Payables Payment Period, Competitors2 | |||||
| Chevron Corp. | 42 | 38 | 29 | 39 | |
| ConocoPhillips | 40 | 33 | 28 | 40 | |
| Exxon Mobil Corp. | 39 | 34 | 30 | 35 | |
| Occidental Petroleum Corp. | 51 | 47 | 40 | 55 | |
| Average Payables Payment Period, Sector | |||||
| Oil, Gas & Consumable Fuels | 40 | 36 | 30 | 38 | |
| Average Payables Payment Period, Industry | |||||
| Energy | 41 | 37 | 31 | 38 | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 5.48 = 67
2 Click competitor name to see calculations.
The financial data reflects a notable shift in the company's management of payables over the four-year period, from the end of 2021 through the end of 2024.
- Payables Turnover Ratio
- The payables turnover ratio exhibits a declining trend. Starting at 23.7 in 2021, there is a slight decrease to 23.42 in 2022, followed by a more pronounced reduction to 14.23 in 2023, culminating in a sharp decline to 5.48 in 2024. This pattern suggests that the company is experiencing slower turnover of its payables, implying a longer time to settle its obligations to suppliers as time progresses.
- Average Payables Payment Period
- This metric shows a steadily increasing trend. Beginning at 15 days in 2021, the payment period increases marginally to 16 days in 2022, then rises substantially to 26 days in 2023, and more than doubles to reach 67 days by 2024. This indicates that on average, the company takes progressively more time to pay its suppliers, which aligns with the decreasing payables turnover ratio.
Overall, the data suggests a shift toward extended payment periods to suppliers. The longer payment intervals could result from strategic cash flow management decisions, operational challenges, or changes in credit terms negotiated with suppliers. This trend may impact supplier relationships and possibly the company’s credit standing. It is advisable to investigate further whether this pattern is due to internal liquidity constraints or strategic financial planning.