Expand Energy Corporation (EXE)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,609,000 | 2,698,000 | 2,103,000 | 1,108,000 | 1,251,000 |
| Total current liabilities | US$ in thousands | 1,314,000 | 2,704,000 | 2,447,000 | 3,094,000 | 2,392,000 |
| Current ratio | 1.99 | 1.00 | 0.86 | 0.36 | 0.52 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,609,000K ÷ $1,314,000K
= 1.99
The current ratio of Expand Energy Corporation has shown a significant improvement over the past five years. As of December 31, 2023, the current ratio stands at 1.99, indicating a healthy liquidity position. This substantial increase from the previous year's ratio of 1.00 suggests that the company has enhanced its ability to meet its short-term obligations using current assets.
Looking back at the trend over the past five years, there has been a consistent effort to strengthen the liquidity position, evident from the significant improvement in the current ratio from 0.52 in 2019 to 1.99 in 2023. This implies that Expand Energy Corporation has been managing its current assets and liabilities more effectively, which is crucial for financial stability and operational flexibility.
The current ratio exceeding 1.0 in recent years indicates that the company possesses more current assets than current liabilities, which is a positive sign for creditors, investors, and other stakeholders. A higher current ratio provides a sense of comfort regarding the company's short-term financial health and its ability to cover its short-term obligations.
In conclusion, the current ratio of Expand Energy Corporation has shown a commendable improvement over the years, reflecting enhanced liquidity management and financial strength. This trend is indicative of a more robust financial position and better capacity to withstand short-term financial challenges.
Peer comparison
Dec 31, 2023