Expand Energy Corporation (EXE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 14,376,000 | 15,468,000 | 11,009,000 | 6,584,000 | 16,193,000 |
| Total stockholders’ equity | US$ in thousands | 10,729,000 | 9,124,000 | 5,671,000 | -5,341,000 | 4,364,000 |
| Financial leverage ratio | 1.34 | 1.70 | 1.94 | — | 3.71 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,376,000K ÷ $10,729,000K
= 1.34
The financial leverage ratio of Expand Energy Corporation has shown a decreasing trend from 2019 to 2023. In 2019, the financial leverage ratio was relatively high at 3.71, indicating a higher level of debt financing compared to equity.
However, there was a significant decrease in the financial leverage ratio to 1.94 in 2021, reflecting a lower reliance on debt financing. This trend continued with further reductions in 2022 and 2023, with the financial leverage ratio reaching 1.70 and 1.34 respectively.
The decreasing trend in the financial leverage ratio suggests that Expand Energy Corporation has been gradually reducing its reliance on debt to finance its operations and investments. This could indicate a more conservative capital structure and potentially lower financial risk for the company. However, further analysis of the company's financial statements and overall financial health would be needed to provide a more comprehensive assessment of its leverage position.
Peer comparison
Dec 31, 2023