Expand Energy Corporation (EXE)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,221,000 | 3,811,000 | 969,000 | -9,422,000 | 12,000 |
| Long-term debt | US$ in thousands | 2,028,000 | 3,093,000 | 2,278,000 | 0 | 9,073,000 |
| Total stockholders’ equity | US$ in thousands | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 | 4,364,000 |
| Return on total capital | 25.25% | 31.19% | 12.19% | — | 0.09% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,221,000K ÷ ($2,028,000K + $10,729,000K)
= 25.25%
The return on total capital for Expand Energy Corporation has fluctuated over the years, as evidenced by the varying percentages. In 2023, the return on total capital was 25.25%, which decreased from the prior year's 31.19%. This decline may indicate a reduced efficiency in generating returns relative to the total capital employed in the business. However, it is still a relatively strong performance compared to the lower returns achieved in 2021 and 2019. The return on total capital in 2021 was 12.19%, showing a significant improvement from the minimal return of 0.09% in 2019. The positive trend from 2019 to 2022 suggests that the company was able to enhance its capital efficiency. Overall, monitoring and analyzing the return on total capital over time provides valuable insight into Expand Energy Corporation's ability to generate profits from its total invested capital.
Peer comparison
Dec 31, 2023