Expand Energy Corporation (EXE)
Liquidity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Current ratio | 0.64 | 1.99 | 1.00 | 0.86 | 0.36 |
| Quick ratio | 0.10 | 1.31 | 0.06 | 0.37 | 0.10 |
| Cash ratio | 0.10 | 1.31 | 0.06 | 0.37 | 0.10 |
Expand Energy Corporation has shown improvement in its liquidity ratios over the years.
The current ratio rose steadily from 0.36 in 2020 to 1.99 in 2023, indicating that the company's ability to cover its short-term liabilities with its current assets has significantly improved. However, there was a slight decline in 2024 to 0.64, which could be a cause for concern as it indicates a potential difficulty in meeting short-term obligations.
The quick ratio also displayed a similar trend, increasing from 0.10 in 2020 to 1.31 in 2023, showing a stronger ability to meet short-term obligations without relying on inventory. The ratio dropped to 0.10 in 2024, which might suggest a decrease in the company's ability to meet immediate liabilities with its most liquid assets.
Lastly, the cash ratio followed a similar pattern, indicating the company's ability to cover its current liabilities with cash and cash equivalents. The ratio improved from 0.10 in 2020 to 1.31 in 2023 but fell back to 0.10 in 2024, potentially signaling some challenges in maintaining sufficient cash reserves to meet short-term obligations.
Overall, while Expand Energy Corporation's liquidity ratios have shown some positive trends in recent years, the slight decline in 2024 across all ratios suggests that the company may need to focus on managing its current assets more effectively to ensure continued liquidity and financial stability.
See also:
Additional liquidity measure
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Based on the data provided, Expand Energy Corporation has consistently maintained a cash conversion cycle of 0.00 days for the years from December 31, 2020, to December 31, 2024. The cash conversion cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
A cash conversion cycle of 0.00 days indicates that Expand Energy Corporation is efficiently managing its working capital, as it is able to quickly convert its investments into cash without experiencing delays or bottlenecks in its operations. This efficiency suggests that the company has a streamlined process for managing inventory, collecting receivables, and paying its suppliers, which can contribute to improved liquidity and financial performance.
Overall, a consistent cash conversion cycle of 0.00 days over multiple years reflects positively on Expand Energy Corporation's operational efficiency and cash flow management practices.