Expand Energy Corporation (EXE)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	27,894,000	14,376,000	15,468,000	11,009,000	6,584,000
Total stockholders’ equity	US$ in thousands	17,565,000	10,729,000	9,124,000	5,671,000	-5,341,000
Financial leverage ratio		1.59	1.34	1.70	1.94	—

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27,894,000K ÷ $17,565,000K
= 1.59

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. For Expand Energy Corporation, the financial leverage ratio has shown a fluctuating trend over the years. In 2020, the ratio was not available, possibly indicating a certain change in the company's financial structure or reporting practices.

Moving forward, the company's financial leverage ratio increased to 1.94 in 2021, indicating a higher level of financial risk as compared to the previous year. However, in 2022, there was a decrease in the ratio to 1.70, which suggests a reduction in the company's reliance on debt to fund its activities.

In the subsequent years, the financial leverage ratio continued to decline, reaching 1.34 in 2023. This decreasing trend indicates a more conservative financial approach by Expand Energy Corporation, with a lower proportion of debt in its capital structure. However, there was a slight increase in the ratio to 1.59 in 2024, which may require further analysis to understand the underlying reasons for this change.

Overall, the fluctuations in Expand Energy Corporation's financial leverage ratio reflect changes in the company's capital structure and risk profile over the years, highlighting the importance of monitoring and managing debt levels effectively.