Expand Energy Corporation (EXE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 | 4,364,000 |
| Debt-to-capital ratio | 0.16 | 0.25 | 0.29 | — | 0.68 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,028,000K ÷ ($2,028,000K + $10,729,000K)
= 0.16
The debt-to-capital ratio of Expand Energy Corporation has exhibited a decreasing trend over the past five years. It decreased from 0.68 in 2019 to 0.16 in 2023, indicating a significant improvement in the company's financial leverage and risk management. This downward trend suggests that the company has been successful in reducing its reliance on debt financing in relation to its total capital structure. A lower debt-to-capital ratio typically signifies a lower level of financial risk and better financial health for the company. The consistent decline in this ratio reflects a positive trajectory for Expand Energy Corporation in terms of its capital structure and financial stability.
Peer comparison
Dec 31, 2023