Expand Energy Corporation (EXE)
Return on equity (ROE)
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Net income | US$ in thousands | -714,000 | 2,419,000 | 4,936,000 | 6,328,000 | -9,734,000 |
Total stockholders’ equity | US$ in thousands | 17,565,000 | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 |
ROE | -4.06% | 22.55% | 54.10% | 111.59% | — |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-714,000K ÷ $17,565,000K
= -4.06%
Expand Energy Corporation's return on equity (ROE) has shown significant fluctuations over the past five years. In 2021, the ROE was notably high at 111.59%, indicating that the company generated a strong return for its shareholders relative to its equity. However, in 2022, the ROE decreased to 54.10%, suggesting a decline in the efficiency of the company in utilizing its equity to generate profits.
In 2023, the ROE further decreased to 22.55%, indicating a continued downward trend in the company's ability to generate returns for its shareholders. The most recent data for 2024 shows a negative ROE of -4.06%, which is concerning as it suggests that Expand Energy Corporation incurred a loss relative to its equity in that year.
Overall, the fluctuating trend in ROE raises a red flag regarding the company's profitability and efficiency in utilizing its equity. It is crucial for Expand Energy Corporation to assess its operational performance and strategic decisions to improve its ROE and enhance shareholder value in the future.
Peer comparison
Dec 31, 2024