Expand Energy Corporation (EXE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -718,000 | 3,229,000 | 3,811,000 | 6,306,000 | -9,293,000 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 17,565,000 | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 |
| Return on total capital | -4.09% | 30.10% | 41.77% | 111.20% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-718,000K ÷ ($—K + $17,565,000K)
= -4.09%
Expand Energy Corporation's return on total capital has exhibited significant fluctuations over the years. The ratio was not available for December 31, 2020. However, for December 31, 2021, the company achieved an impressive return on total capital of 111.20%, indicating efficient use of both debt and equity capital to generate profits. In the following years, the return on total capital decreased but remained positive, with 41.77% for December 31, 2022, and 30.10% for December 31, 2023, suggesting a sustained level of profitability relative to the capital employed. However, the trend reversed in December 31, 2024, with a negative return on total capital of -4.09%, indicating that the company may have faced challenges in generating returns on its total capital investment during that period. It is essential for Expand Energy Corporation to analyze the factors contributing to these fluctuations and implement strategic measures to maintain or improve its return on total capital in the future.
Peer comparison
Dec 31, 2024