Expand Energy Corporation (EXE)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | -841,000 | 3,117,000 | 3,651,000 | 6,222,000 | -9,769,000 |
| Revenue | US$ in thousands | 4,221,000 | 7,775,000 | 11,443,000 | 7,301,000 | 5,210,000 |
| Pretax margin | -19.92% | 40.09% | 31.91% | 85.22% | -187.50% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $-841,000K ÷ $4,221,000K
= -19.92%
Expand Energy Corporation has shown fluctuations in its pretax margin over the past five years. In December 31, 2020, the company reported a negative pretax margin of -187.50%, indicating that its expenses exceeded its revenues, resulting in a loss before tax.
However, there was a significant turnaround in December 31, 2021, with the pretax margin improving to a positive 85.22%. This sharp increase suggests that the company was able to effectively manage its expenses and generate higher revenue relative to costs.
In the following years, the pretax margin remained positive but fluctuated. In December 31, 2022, the pretax margin decreased to 31.91%, indicating a decrease in profitability compared to the previous year. However, it still remained above 0%, showing that the company was still profitable before tax.
By December 31, 2023, the pretax margin improved to 40.09%, indicating a further increase in profitability. This could suggest that Expand Energy Corporation implemented cost-saving measures or experienced revenue growth during this period.
Unfortunately, in December 31, 2024, the pretax margin declined to -19.92%, indicating a return to a negative territory. This could be a concerning trend for the company, as it suggests that expenses once again exceeded revenues, leading to a loss before tax.
Overall, while Expand Energy Corporation has shown improvement in its pretax margin over the years, there have been fluctuations in profitability. It is important for the company to closely monitor its expenses and revenue generation to ensure sustainable profitability in the future.
Peer comparison
Dec 31, 2024