Expand Energy Corporation (EXE)
Debt-to-equity 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-equity ratio | 0.19 | 0.34 | 0.40 | — | 2.08 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,028,000K ÷ $10,729,000K
= 0.19
Expand Energy Corporation's debt-to-equity ratio has shown a decreasing trend over the past five years. The ratio decreased from 2.08 in 2019 to 0.40 in 2021, then further decreased to 0.34 in 2022, and reached 0.19 in 2023. This declining pattern indicates that the company has been reducing its reliance on debt financing in comparison to equity financing over the period under review.
A debt-to-equity ratio of 0.19 in 2023 suggests that Expand Energy Corporation is using a proportionately lower amount of debt to finance its operations compared to equity. This indicates a relatively conservative financial structure, which may be viewed positively by investors and creditors as it implies lower financial risk.
However, it is also important to consider the industry averages and benchmarks when analyzing the debt-to-equity ratio to ensure the company's leverage position is in line with industry standards. Additionally, the absence of data for 2020 could potentially hide a significant event regarding the company's debt or equity structure during that year.
Overall, based on the decreasing trend in the debt-to-equity ratio, Expand Energy Corporation appears to be managing its debt levels effectively and maintaining a healthy balance between debt and equity financing.
Peer comparison
Dec 31, 2023