Expand Energy Corporation (EXE)

Short-term

Turnover ratios

Inventory turnover is not provided for the years shown.

Receivables turnover has been fluctuating over the years, with a significant increase in 2023 compared to the previous year. This indicates that Expand Energy Corporation is collecting its accounts receivable more frequently in 2023.

Payables turnover has also varied, with a notable decrease in 2023 compared to 2022. This suggests that the company is taking longer to pay its suppliers in 2023.

Working capital turnover is only provided for 2023, indicating that the company generated revenue approximately 6.73 times relative to its working capital during that year, but data for the previous years is not available for comparison.

Overall, a high receivables turnover and low payables turnover may indicate efficient management of accounts receivable and potential liquidity challenges due to a slower payment cycle.

---

Average number of days

Based on the activity ratios for Expand Energy Corporation over the past five years, we can observe the efficiency of the company's operations in managing its inventory, receivables, and payables.

1. Days of Inventory on Hand (DOH): The data for this ratio is not available for any of the years, which limits our ability to assess how efficiently Expand Energy is managing its inventory levels. A lower DOH typically indicates efficient inventory management by the company.

2. Days of Sales Outstanding (DSO): The DSO ratio has fluctuated over the years, ranging from a low of 24.82 days in 2023 to a high of 73.34 days in 2021. This ratio measures how quickly the company collects its accounts receivable. A decreasing trend in DSO is generally favorable as it indicates faster collection of receivables.

3. Number of Days of Payables: The days of payables outstanding have shown significant variability, with a peak of 1,342.04 days in 2022 and a low of 14.20 days in 2020. A high number of days of payables may suggest that Expand Energy is taking longer to pay its suppliers, potentially impacting relationships, while a lower number could indicate efficient management of payables.

In conclusion, Expand Energy Corporation should aim to improve its efficiency in managing inventory levels, continue reducing the days of sales outstanding to accelerate cash inflows, and maintain a balanced approach to managing its payables to support vendor relationships while optimizing its cash conversion cycle.

---

Long-term

The fixed asset turnover ratio for Expand Energy Corporation has fluctuated over the past five years, indicating the efficiency of the company in generating sales from its fixed assets. In 2023, the ratio stands at 0.86, which is lower than the previous year but higher compared to 2020 and 2019. This suggests that the company may be utilizing its fixed assets less effectively in generating revenue compared to the previous year.

On the other hand, the total asset turnover ratio, which measures the company's ability to generate sales from all its assets, has also shown variation over the years. In 2023, the ratio is 0.61, reflecting a decrease from the previous year. This could indicate that Expand Energy Corporation is less efficient in generating sales from its total assets compared to the prior year.

Overall, both ratios suggest that Expand Energy Corporation may need to reassess its asset utilization efficiency to improve its long-term profitability and operational efficiency. Further analysis and comparison with industry benchmarks could provide more insights into the company's performance in this regard.