Expand Energy Corporation (EXE)

Return on total capital

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	360,000	609,000	1,443,000	3,221,000	4,694,000	5,609,000	6,419,000	3,811,000	3,002,000	1,655,000	-116,000	969,000	-850,000	-1,232,000	-950,000	-9,422,000	-9,226,000	-8,391,000	-7,979,000	12,000
Long-term debt	US$ in thousands	2,017,000	2,021,000	2,025,000	2,028,000	2,032,000	2,036,000	2,040,000	3,093,000	2,717,000	3,046,000	2,774,000	2,278,000	1,259,000	1,261,000	1,262,000	0	0	0	9,163,000	9,073,000
Total stockholders’ equity	US$ in thousands	10,188,000	10,370,000	10,682,000	10,729,000	10,268,000	10,396,000	10,283,000	9,124,000	6,347,000	5,808,000	5,383,000	5,671,000	3,038,000	3,413,000	3,881,000	-5,341,000	-4,940,000	-4,209,000	-3,945,000	4,364,000
Return on total capital		2.95%	4.91%	11.36%	25.25%	38.16%	45.12%	52.09%	31.19%	33.12%	18.69%	-1.42%	12.19%	-19.78%	-26.36%	-18.47%	—	—	—	-152.91%	0.09%

September 30, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $360,000K ÷ ($2,017,000K + $10,188,000K)
= 2.95%

Expand Energy Corporation's return on total capital has fluctuated over the past few quarters. From December 2019 to March 2020, the return on total capital was significantly negative, indicating a period of poor performance or financial distress. However, there was a notable improvement in the return on total capital from March 2020 to March 2022, with a positive trend reaching a peak at 52.09% in March 2023.

Subsequently, there was a decline in the return on total capital until December 2023, where it reached 25.25%. This was followed by a further decrease to 11.36% in March 2024 and 4.91% in June 2024. The return on total capital further decreased to 2.95% in September 2024.

Overall, Expand Energy Corporation's return on total capital demonstrates variability in performance over the periods observed, with peaks and troughs in the ratio. It is important for the company to analyze the factors contributing to these fluctuations and implement strategies to maintain or improve its return on total capital in the future.