Expand Energy Corporation (EXE)
Total asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,721,000 | 11,743,000 | 5,549,000 | 5,240,000 | 8,532,000 |
| Total assets | US$ in thousands | 14,376,000 | 15,468,000 | 11,009,000 | 6,584,000 | 16,193,000 |
| Total asset turnover | 0.61 | 0.76 | 0.50 | 0.80 | 0.53 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,721,000K ÷ $14,376,000K
= 0.61
The total asset turnover ratio measures a company's ability to generate revenue from its total assets. A higher ratio indicates more efficient asset utilization.
Expand Energy Corporation's total asset turnover has fluctuated over the past five years. In 2023, the ratio decreased to 0.61 from 0.76 in 2022, signaling a decline in the company's ability to generate sales from its total assets. This may suggest potential inefficiencies in asset management or difficulties in generating revenue.
Comparing to the ratio of 0.50 in 2021, the 2023 ratio is an improvement, indicating that the company has managed to increase its revenue generation per total asset. However, the ratio is still below the level seen in 2020 and 2019, implying that further efforts may be needed to enhance asset utilization and revenue generation efficiency.
In conclusion, while the 2023 total asset turnover ratio shows some improvement compared to the previous year, Expand Energy Corporation may need to focus on optimizing its asset utilization to boost revenue generation and overall financial performance.
Peer comparison
Dec 31, 2023