Expand Energy Corporation (EXE)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 24.73% | 62.66% | 71.28% | 33.15% | 11.90% |
| Operating profit margin | -19.02% | 40.41% | 33.03% | 31.84% | -167.04% |
| Pretax margin | -19.92% | 40.09% | 31.91% | 85.22% | -187.50% |
| Net profit margin | -16.92% | 31.11% | 43.14% | 86.67% | -186.83% |
Expand Energy Corporation's profitability ratios have shown significant fluctuations over the past five years. The gross profit margin has increased from 11.90% in 2020 to 71.28% in 2022 before decreasing to 24.73% in 2024. This suggests that the company's ability to generate profit from its core operations improved significantly but then experienced a decline in the most recent year.
The operating profit margin also experienced fluctuations, starting at a negative 167.04% in 2020, then steadily increasing to 40.41% in 2023. However, there was a decrease to -19.02% in 2024, indicating that the company struggled to control its operating expenses relative to its revenues in that year.
Similarly, the pretax margin displayed variability, with a notable improvement from -187.50% in 2020 to 85.22% in 2021. However, there was a decline to -19.92% in 2024, possibly due to a decrease in income before accounting for taxes.
The net profit margin showed a similar pattern, with a significant turnaround from a negative 186.83% in 2020 to a positive 43.14% in 2022. However, there was a decline to -16.92% in 2024, indicating challenges with controlling costs and other expenses relative to net income.
Overall, while Expand Energy Corporation demonstrated improvements in profitability margins in certain years, the fluctuations in margins over the period suggest a need for closer monitoring of cost management and operational efficiency to ensure sustainable profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -2.88% | 21.86% | 24.44% | 21.12% | -132.18% |
| Return on assets (ROA) | -2.56% | 16.83% | 31.91% | 57.48% | -147.84% |
| Return on total capital | -4.09% | 30.10% | 41.77% | 111.20% | — |
| Return on equity (ROE) | -4.06% | 22.55% | 54.10% | 111.59% | — |
The profitability ratios of Expand Energy Corporation show varying performance over the period from December 31, 2020, to December 31, 2024.
1. Operating Return on Assets (Operating ROA):
- The Operating ROA indicates how efficiently the company is generating profits from its operational assets. The ratio was negative at -132.18% in 2020, indicating operational losses. However, there was a significant improvement in 2021 with a positive return of 21.12%. The trend continued to improve in the following years, reaching 24.44% in 2022 and 21.86% in 2023. However, there was a slight decline in the performance to -2.88% in 2024.
2. Return on Assets (ROA):
- The ROA reflects the overall profitability of the company concerning its total assets. A negative ROA of -147.84% in 2020 indicated significant losses compared to the asset base. The performance dramatically improved in 2021, with a return of 57.48%, showcasing a substantial increase in profitability. The ROA then decreased to 31.91% in 2022 and further dropped to 16.83% in 2023 before turning negative at -2.56% in 2024.
3. Return on Total Capital:
- The Return on Total Capital measures the return the company generates on all of its capital employed. The data did not provide the return for December 31, 2020. However, in 2021, there was a high return of 111.20%, indicating efficient use of all capital. The return then decreased to 41.77% in 2022 and further to 30.10% in 2023 before dropping into negative territory at -4.09% in 2024.
4. Return on Equity (ROE):
- The ROE signifies the return earned by the company on the shareholders' equity. The data did not provide the return for December 31, 2020. In 2021, the ROE was 111.59%, indicating high returns for shareholders. The return decreased to 54.10% in 2022 and further to 22.55% in 2023. The performance turned negative at -4.06% in 2024, implying losses concerning shareholder equity.
In conclusion, Expand Energy Corporation's profitability ratios show fluctuations over the years, with improvements seen in some ratios but declining performance in others. It is essential for the company to address the factors influencing these ratios to sustain and enhance profitability in the future.