Expand Energy Corp. (NASDAQ:EXE)

Receivables Turnover

The receivables turnover ratio showed a notable increase from 6.23 in March 2022 to a peak of 15.94 in June 2023, indicating an improvement in the efficiency of collecting receivables during that period. Following the peak, the ratio declined overall, with some fluctuations, dropping to as low as 3.47 in December 2024 before a slight recovery to 4.83 in March 2025. This pattern reflects an initial strengthening of accounts receivable management, followed by a significant easing in collections towards the end of the series.

Payables Turnover

The payables turnover ratio started high at 23.03 in March 2022, peaking at 27.05 in June 2022, then generally trended downward to 5.48 in December 2024. This decline indicates a lengthening of the payment cycle to suppliers, suggesting slower payments over time. A small increase in turnover to 10.04 in March 2025 may indicate some recent improvement in payables management, but overall, the trend suggests reduced payables efficiency over the examined periods.

Working Capital Turnover

The data for working capital turnover begins in March 2023 at a high level of 18.40 and remains relatively stable through June 2023. Subsequently, there is a consistent decline, falling sharply to 3.66 by September 2024. This downward trajectory suggests weakening efficiency in generating sales from working capital, possibly reflecting challenges in managing current assets and liabilities effectively.

Average Receivable Collection Period

This metric decreased significantly from 59 days in March 2022 to a minimum of 23 days in June and March 2023, indicating faster collection of receivables in the early part of the analyzed timeframe. Afterwards, the collection period fluctuates moderately, with a notable spike to 105 days in December 2024 before declining to 76 days in March 2025. The sharp increase in late 2024 signals difficulties in collecting receivables during that quarter, adversely affecting cash flow.

Average Payables Payment Period

The average payables payment period initially increased gradually from 16 days in March 2022 to 26 days by the end of 2022. This trend continued with a more notable rise to 67 days in December 2024, indicating that the company extended its payment terms to suppliers substantially over time. The period shortened to 36 days by March 2025, suggesting an effort to expedite payments recently. Overall, the elongated payment periods could be a strategy to conserve cash or a sign of cash flow constraints.

The quarterly financial data reveals notable fluctuations in revenues over the examined periods. Initially, revenues rose sharply from the first quarter of 2022 through the third quarter of 2022, peaking near the end of 2022. This peak was followed by a significant decline throughout 2023, reaching a low point in mid-2024 before demonstrating a substantial recovery by the first quarter of 2025.

Accounts receivable, net, followed a somewhat similar pattern, albeit with less pronounced volatility. This metric increased until the third quarter of 2022, then trended downward through the end of 2023. After reaching a trough towards mid-2024, accounts receivable saw a strong rise entering 2025. The correlation between revenues and accounts receivable suggests a connection between sales performance and outstanding customer balances.

The receivables turnover ratio exhibited considerable variability across the periods. Early data indicated moderate turnover rates, which substantially increased during late 2022 and into 2023, suggesting improved efficiency in collecting receivables relative to revenues. However, this trend reversed in the later quarters, with turnover rates declining sharply in late 2024 and early 2025. This decline in turnover ratios indicates a potential slowdown in collections or a relative accumulation of receivables compared to sales during these periods.

Summary of Key Trends:

Revenues experienced a peak in late 2022 with a subsequent decline through 2023 and a strong rebound starting late 2024.

Accounts receivable mirrored revenue trends but with smoother transitions, declining after 2022 before rising again in early 2025.

Receivables turnover ratio improved notably in late 2022 and early 2023, pointing to enhanced collection efficiency, but deteriorated markedly towards the end of the observed period.

Overall, the data indicates a cyclical pattern in sales and collection efficiency, with a period of growth followed by contraction and then recovery. The fluctuations in receivables turnover suggest changing credit management or customer payment behavior that warrants further monitoring.

The analysis of the financial data over the observed periods reveals several key trends in revenues, accounts payable, and payables turnover for the entity under review.

Revenues

Revenues exhibited a marked fluctuation over the timeframe. Initially, there was an increase from 2,781 million to a peak of 4,193 million US dollars by the third quarter of 2022. This was followed by a significant decline in revenues through the first half of 2023, reaching a low of 1,260 million US dollars in the second quarter of 2023. Subsequently, the revenues gradually increased again, observing some volatility, and achieving a relatively high figure of 3,210 million US dollars by the first quarter of 2025. Overall, revenues demonstrate a cyclical pattern with a peak in late 2022 and another rebound commencing in late 2024.

Accounts Payable

Accounts payable progressively increased from 374 million US dollars at the beginning of the period to a peak of 642 million US dollars in the second quarter of 2023. Following this peak, a declining trend is observed through the remainder of 2023 and into early 2024, ultimately reaching a low of 264 million US dollars in the third quarter of 2024. Towards the end of the sequence, accounts payable rose again to 777 million US dollars in the fourth quarter of 2024, before a slight decrease to 654 million US dollars in the first quarter of 2025. This pattern suggests periods of increasing and decreasing liabilities associated with supplier obligations, potentially reflecting changes in purchasing or payment policies.

Payables Turnover

The payables turnover ratio demonstrated an overall declining trend from a high of 27.05 times in mid-2022 to a low of 5.48 times in the fourth quarter of 2024, before showing a moderate recovery to 10.04 times by the first quarter of 2025. This reduction in turnover ratio indicates that the company was taking longer to settle its accounts payable over time, which may suggest liquidity considerations or strategic adjustments in managing cash flows. The slight uptick at the end of the period may indicate an improvement in payment efficiency or a shift in working capital management.

In summary, the financial data reflects the presence of volatility in revenues, with initial growth followed by contraction and subsequent recovery. Accounts payable follow a pattern of rising and falling levels, which aligns with fluctuations in payables turnover ratio, indicating shifts in payment practices and potentially impacting liquidity management. The extended decline in payables turnover suggests a lengthening of payment cycles during much of the timeframe, with recent indications of possible normalization.

Working Capital

The working capital showed a significant improvement from negative values starting at -2,905 million US dollars on March 31, 2022, to slightly positive territory by December 31, 2022, reaching 731 million US dollars. Subsequently, the working capital fluctuated moderately but remained positive through the first quarter of 2024, peaking at 1,358 million US dollars on March 31, 2024. However, from June 30, 2024, onward, the working capital declined sharply, returning to negative values by December 31, 2024, and further decreasing to -1,476 million US dollars by March 31, 2025. This suggests a deterioration in the company’s short-term financial health towards the end of the observed period.

Revenues

Revenues experienced considerable volatility during the period. The highest revenue figures were observed in the quarters of June and September 2022, peaking at approximately 4,013 million and 4,193 million US dollars, respectively. Following this peak, revenues declined sharply, reaching a low of 514 million US dollars in June 2024. Starting from the third quarter of 2024, a strong recovery was noted, with revenues rising from 600 million US dollars in September 2024 to 3,210 million US dollars by March 31, 2025. This indicates periods of fluctuating market performance or operational changes impacting sales volume or pricing.

Working Capital Turnover

Working capital turnover ratios were not available initially but from March 31, 2023, a relatively high turnover was recorded, peaking at 18.79 in June 2023. This ratio then showed a clear declining trend to 3.57 by March 31, 2024, and remained fairly stable around 3.6 to 3.8 through September 30, 2024. The initial high ratios suggest efficient use of working capital to generate sales in the first half of 2023, while the later lower ratios indicate reduced efficiency or an increase in working capital relative to sales.

Overall Insights

The data reveals that the company managed to improve its working capital significantly within the first year, accompany strong early revenue performance and high working capital turnover. However, the subsequent period shows a decline in working capital and efficiency ratios, coinciding with a slump in revenues until mid-2024. A notable recovery in revenues was recorded at the end of 2024 into early 2025, despite working capital turning negative again. This pattern indicates potential operational or market challenges impacting liquidity and sales, with recent positive revenue trends possibly reflecting strategic adjustments or improving market conditions. Continuous monitoring of working capital levels and turnover efficiency will be critical to ensure sustainable growth.

Receivables Turnover

The receivables turnover ratio exhibits notable fluctuations over the analyzed periods. Starting at a moderate level of 6.23 at the beginning of 2022, it shows an upward trend through the rest of the year, peaking at 9.82 by December 31, 2022. The ratio then experiences a sharp increase during the first half of 2023, reaching the highest values of 15.56 and 15.94 in March and June respectively. Following this peak, the ratio declines somewhat but remains elevated through the end of 2023 and into early 2024, with values mostly ranging between 10 and 15. However, a significant decrease is observed in the last two reported quarters, as the ratio falls drastically to 3.47 and then slightly recovers to 4.83 by March 31, 2025. This pattern suggests variability in the efficiency of receivables management, with periods of improved collection efficiency followed by deterioration towards the end of the timeline.

Average Receivable Collection Period

This metric, which inversely correlates with receivables turnover, shows a consistent decline from early 2022 through early 2023, decreasing steadily from 59 days to as low as 23 days. This indicates improved efficiency in collecting receivables during this timeframe. Subsequently, there is a moderate increase in the collection period during the remainder of 2023 and early 2024, fluctuating between 29 and 36 days, suggesting some loosening in collection discipline. A marked deterioration occurs in the last two reporting quarters, where the collection period sharply increases to 105 days and then slightly decreases to 76 days. Such a rise denotes a significant slowdown in the conversion of receivables into cash in the latest periods.

Overall Analysis

The data reveals a period of improving receivables management efficiency from 2022 through the first half of 2023, characterized by increasing turnover ratios and decreasing collection periods. This trend indicates quicker conversion of receivables into cash, potentially enhancing liquidity. From mid-2023 onwards, there is a reversal with declining turnover ratios and longer collection periods, culminating in notably adverse metrics in the final two quarters. This suggests growing challenges in receivables collection, which may impact cash flow and working capital management adversely if not addressed promptly.

Payables Turnover Ratio

The payables turnover ratio exhibited a generally declining trend over the observed period. It started at 23.03 in March 2022, peaked at 27.05 in June 2022, and then declined progressively through subsequent quarters. From March 2023 onward, the ratio decreased more sharply, reaching a low of 5.48 in December 2024, before slightly rebounding to 10.04 in March 2025. This overall decline suggests a slowing in the frequency with which payables are being paid off relative to purchases on credit.

Average Payables Payment Period

The average payables payment period, measured in days, showed an increasing trend. It began at 16 days in March 2022, decreased slightly to 13 days by June 2022, and then generally extended over time. Notably, from March 2023, it lengthened substantially, rising from 17 days to a peak of 67 days in December 2024, before decreasing to 36 days in March 2025. This increasing payment period indicates that the company took longer to pay its suppliers as time progressed, particularly in the latter part of the timeline.

Overall Analysis

The inverse relationship between the payables turnover ratio and the average payment period is evident. As the company extended the time taken to settle payables, the turnover ratio decreased accordingly. The sharp increase in the payment period towards the end of 2024 may point to liquidity management strategies or potential cash flow constraints. The slight improvement in early 2025 suggests some normalization in payment practices.