Expand Energy Corporation (EXE)

Expand Energy Corporation's solvency ratios indicate the company's ability to meet its long-term debt obligations and sustain its operations.

The Debt-to-assets ratio has been declining over the past five years, reaching 0.14 in 2023. This indicates that Expand Energy's total debt as a percentage of its total assets has decreased, suggesting a stronger financial position and lower reliance on debt financing.

Similarly, the Debt-to-capital ratio has also shown a decreasing trend, indicating a reduction in the proportion of debt in the company's capital structure. As of 2023, the ratio stands at 0.16, reflecting a more balanced mix of debt and equity financing.

The Debt-to-equity ratio has also decreased steadily over the years, reaching 0.19 in 2023. This indicates that the company's debt level in relation to its equity has decreased, signifying lower financial risk and a more stable capital structure.

The Financial leverage ratio has followed a consistent downward trend, decreasing to 1.34 in 2023. This ratio indicates the extent to which the company's assets are funded by debt, and the decreasing trend suggests a lower reliance on debt financing to support its operations.

Overall, the downward trends in these solvency ratios suggest that Expand Energy Corporation has been effectively managing its debt levels, improving its financial stability, and reducing the risks associated with excessive leverage.

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Coverage ratios

The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a stronger ability to cover interest payments.

Looking at the trend of Expand Energy Corporation's interest coverage over the past five years, we observe significant fluctuations. In 2023, the interest coverage ratio improved to 30.97, a substantial increase from 23.82 in 2022 and 13.27 in 2021. This indicates that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses in 2023.

However, it is worth noting that in 2020, the interest coverage ratio was negative at -28.47, suggesting that the company's EBIT was not enough to cover its interest costs that year, raising concerns about the company's financial health and ability to service its debt.

Furthermore, in 2019, the interest coverage ratio was very low at 0.02, indicating a minimal buffer to cover interest payments.

Overall, the recent improvement in Expand Energy Corporation's interest coverage ratio is a positive sign, suggesting a stronger ability to meet interest obligations. However, past fluctuations and the negative ratio in 2020 highlight the importance of monitoring the company's financial situation closely to ensure it remains capable of servicing its debt obligations.