Expand Energy Corporation (EXE)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	3,142,000	3,780,000	938,000	-8,703,000	-31,000
Total assets	US$ in thousands	14,376,000	15,468,000	11,009,000	6,584,000	16,193,000
Operating ROA		21.86%	24.44%	8.52%	-132.18%	-0.19%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $3,142,000K ÷ $14,376,000K
= 21.86%

Expand Energy Corporation's operating return on assets (operating ROA) has exhibited fluctuations over the past five years. In 2023, the operating ROA stood at 21.86%, showing a slight decrease from 24.44% in 2022. Despite this decline, the company's operating ROA remains at a relatively healthy level, indicating that the company is generating a reasonable return on its assets.

The significant improvement in operating ROA from 2020 to 2022, where it increased from -132.18% to 24.44%, suggests that Expand Energy Corporation successfully enhanced its operational efficiency and profitability during this period. However, the fluctuation in operating ROA over the years may also indicate certain instability in the company's operations or changes in its business environment.

It is important to note that the negative operating ROA in 2020 and 2019 (-132.18% and -0.19%, respectively) is a cause for concern, signaling that the company's operating income was insufficient to cover its assets in those years. This highlights potential financial challenges or inefficiencies that Expand Energy Corporation may have faced during those periods.

Overall, the trend in operating ROA for Expand Energy Corporation suggests a mix of improvements and challenges in its operational performance and asset utilization over the past five years. Further analysis of the company's financial and operational strategies would be necessary to assess the factors driving these fluctuations and to determine the sustainability of its profitability in the future.