Expand Energy Corporation (EXE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | — |
| Financial leverage ratio | 1.59 | 1.34 | 1.70 | 1.94 | — |
Expand Energy Corporation's solvency ratios show a consistently strong financial position over the past five years. The Debt-to-assets ratio has been recorded at 0.00 for each year, indicating that the company has no significant debt relative to its total assets.
The Debt-to-capital ratio, which was not available for 2020 but stood at 0.00 for the subsequent years, reaffirms the company's low levels of debt relative to its capital structure. This suggests that the company relies more on equity financing rather than debt.
Similarly, the Debt-to-equity ratio also remains at 0.00 across all the years, reflecting a healthy balance between debt and equity financing. The company's conservative debt levels compared to its equity indicate a lower financial risk and potential for financial distress.
Lastly, the Financial leverage ratio decreased from 1.94 in 2021 to 1.59 in 2024, indicating a decreasing reliance on debt to finance the company's operations. This trend suggests that Expand Energy Corporation is becoming more adept at managing its financial leverage effectively while maintaining a stable capital structure.
Overall, the solvency ratios for Expand Energy Corporation demonstrate a strong financial foundation and sound financial management practices, positioning the company favorably in terms of its ability to meet its financial obligations and weather economic uncertainties.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -5.52 | 28.83 | 23.38 | 75.07 | -19.52 |
The interest coverage ratio measures a company's ability to meet its interest obligations with its operating income. A higher interest coverage ratio indicates a stronger ability to cover interest expenses.
Looking at the interest coverage ratio of Expand Energy Corporation over the past five years, we observe significant fluctuations. In December 2020, the interest coverage ratio was -19.52, indicating that the company's operating income was insufficient to cover its interest expenses. This raises concerns about the company's financial health and ability to service its debt.
However, there was a substantial improvement in December 2021, with the interest coverage ratio increasing to 75.07. This significant increase suggests that the company's operating income more than covered its interest expenses, reflecting a healthy financial position.
In the following years, the interest coverage ratio remained above 20, ranging from 23.38 in December 2022 to 28.83 in December 2023. These figures indicate that Expand Energy Corporation continued to have a strong ability to meet its interest obligations with its operating income.
However, in December 2024, the interest coverage ratio dipped to -5.52, signaling a concerning drop in the company's ability to cover its interest expenses. This sharp decline may raise questions about the company's financial stability and its capacity to handle its debt burdens effectively.
Overall, while Expand Energy Corporation demonstrated improvements in its interest coverage ratio over the years, the negative ratio in December 2020 and the significant drop in December 2024 highlight potential vulnerabilities in the company's financial position that may warrant further exploration and monitoring.