Expand Energy Corporation (EXE)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,028,000 | 3,093,000 | 2,278,000 | 0 | 9,073,000 |
| Total assets | US$ in thousands | 14,376,000 | 15,468,000 | 11,009,000 | 6,584,000 | 16,193,000 |
| Debt-to-assets ratio | 0.14 | 0.20 | 0.21 | 0.00 | 0.56 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,028,000K ÷ $14,376,000K
= 0.14
The debt-to-assets ratio of Expand Energy Corporation has fluctuated over the past five years. In 2023, the ratio stands at 0.14, indicating that 14% of the company's assets are financed through debt. This represents an improvement from the prior year when the ratio was 0.20. The decrease in the ratio suggests that the company has reduced its reliance on debt financing in relation to its total assets.
Comparing to 2021 and 2020, the debt-to-assets ratio was higher at 0.21 and 0.00, respectively. The ratio in 2020 being 0.00 indicates that the company had no debt financing at that time, potentially reflecting a strategic decision to operate with lower leverage or a strong financial position.
In 2019, the debt-to-assets ratio was significantly higher at 0.56, signaling that 56% of the company's assets were funded through debt. The notable decrease in the ratio by 2023 suggests a shift towards a more conservative capital structure and improved financial health for Expand Energy Corporation.
Overall, the trend in the debt-to-assets ratio indicates that the company has made efforts to manage its debt levels relative to its asset base in recent years, potentially enhancing its financial stability and risk profile.
Peer comparison
Dec 31, 2023