Expand Energy Corporation (EXE)

Short-term

Turnover ratios

Based on the activity ratios data provided for Expand Energy Corporation, we can observe the following trends:

1. Receivables Turnover:
- The receivables turnover ratio has fluctuated over the periods, indicating how efficiently the company is collecting its accounts receivable.
- There is a general upward trend in the ratio from the beginning of 2020 to September 2023, suggesting an improvement in collecting receivables.
- However, the ratio decreased in the most recent periods, which may indicate a slower collection of receivables or changes in the company's credit policies.

2. Payables Turnover:
- The payables turnover ratio has also varied significantly across the periods, reflecting the speed at which the company pays its suppliers.
- The ratio was relatively stable at low levels until a significant increase in December 2022, suggesting a shift towards more frequent payments to suppliers.
- The sharp decrease in payables turnover in the most recent periods might be due to extended payment terms or changes in the company's relationships with suppliers.

3. Inventory Turnover:
- Unfortunately, there is missing data for the inventory turnover ratio, which hinders a comprehensive analysis of how quickly Expand Energy Corporation is selling its inventory.

4. Working Capital Turnover:
- The working capital turnover ratio, which measures how efficiently the company utilizes its working capital to generate sales, shows a varied pattern throughout the available periods.
- There is a notable decline in the ratio from 2019 to 2020, which could indicate a slowdown in sales relative to the working capital employed.
- However, the ratio experienced a significant increase from September 2020 to March 2023, suggesting improved utilization of working capital to drive sales.
- The absence of data for the most recent periods limits a complete assessment of the company's recent performance in this aspect.

Overall, analyzing these activity ratios provides insights into Expand Energy Corporation's efficiency in managing its inventory, receivables, payables, and working capital over time, highlighting areas of strength and potential areas for improvement.

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Average number of days

Days of inventory on hand (DOH) for Expand Energy Corporation are not available in the provided data.

Days of sales outstanding (DSO) have fluctuated over the periods, ranging from as low as 17.82 days to as high as 90.08 days. A lower DSO indicates that the company is collecting its accounts receivable faster, which is generally favorable.

The number of days of payables also varies significantly, with the company taking as long as 1,395.28 days to pay its suppliers in one period. A longer payment period can have both positive and negative implications, such as improving cash flow but potentially damaging supplier relationships.

Overall, a trend analysis of these activity ratios could provide insights into Expand Energy Corporation's management of inventory, accounts receivable, and accounts payable, which are crucial components of its working capital management.

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Long-term

Expand Energy Corporation's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insight into the efficiency of the company's asset management over time.

The fixed asset turnover ratio indicates how effectively the company is utilizing its fixed assets to generate revenue. The trend shows a fluctuating pattern, with the ratio declining from 0.58 in December 2019 to a low of 0.42 in September 2024. This suggests that Expand Energy may not be efficiently utilizing its fixed assets in recent periods compared to earlier years.

On the other hand, the total asset turnover ratio reflects the efficiency of the company in generating sales from all assets. Similar to the fixed asset turnover, the total asset turnover ratio has also been fluctuating. While the ratio increased from 0.53 in December 2019 to a peak of 0.87 in June 2023, it has since decreased to 0.31 in September 2024. This indicates that overall asset utilization in generating sales has been less efficient in recent quarters.

Overall, the declining trend in both fixed asset turnover and total asset turnover ratios implies that Expand Energy Corporation may need to assess its asset management strategies to improve efficiency in generating sales from its assets. Additionally, the company may benefit from exploring ways to optimize asset utilization to enhance profitability and long-term sustainability.