Expand Energy Corporation (EXE)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | — | — | — | — |
| Financial leverage ratio | 1.59 | 1.31 | 1.31 | 1.31 | 1.34 | 1.39 | 1.39 | 1.42 | 1.72 | 2.22 | 2.39 | 2.47 | 1.94 | 2.41 | 2.05 | 1.78 | — | — | — | — |
Expand Energy Corporation's solvency ratios show a consistently favorable picture over the analyzed period.
1. Debt-to-Assets Ratio: The ratio indicates the proportion of the company's assets that are financed through debt. With a debt-to-assets ratio of 0.00 throughout the entire period, it suggests that the company has not relied on debt to finance its assets, indicating a low risk of insolvency related to debt obligations.
2. Debt-to-Capital Ratio: This ratio demonstrates the percentage of capital provided by debt in relation to the total capital structure. Although data is unavailable for the period up to March 31, 2021, from March 31, 2021, to December 31, 2024, the company consistently maintained a debt-to-capital ratio of 0.00. This implies that debt funding does not have a significant contribution to the company's capital structure, reflecting a conservative approach towards financing.
3. Debt-to-Equity Ratio: This ratio indicates the extent to which the company's operations are funded by debt relative to equity. Similar to the debt-to-capital ratio, the debt-to-equity ratio remained constant at 0.00 from March 31, 2021, to December 31, 2024. The consistent low ratio suggests that Expand Energy Corporation has a strong equity base supporting its operations, reducing financial risk associated with excessive debt.
4. Financial Leverage Ratio: This ratio measures the extent to which the company uses debt to finance its assets. The ratio decreased from 1.78 on March 31, 2021, to 1.59 on December 31, 2024. The declining trend indicates a reduction in financial risk and an improved ability to meet debt obligations with earnings. Overall, the decreasing trend in the financial leverage ratio reflects a prudent management strategy in maintaining financial stability and solvency.
In conclusion, Expand Energy Corporation's solvency ratios demonstrate a strong financial position with minimal reliance on debt financing, indicating a low risk of insolvency and sustainable financial health.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -5.74 | 4.71 | 7.06 | 15.35 | 28.76 | 36.39 | 35.96 | 38.44 | 23.82 | 20.56 | 14.91 | -1.25 | 75.07 | 54.72 | 45.61 | 20.99 | -28.51 | -20.72 | -14.06 | -12.57 |
The interest coverage ratio measures a company's ability to pay its interest expenses on outstanding debt. A higher ratio indicates a stronger ability to meet interest obligations, while a lower ratio suggests a higher risk of defaulting on debt payments.
From March 31, 2020, to December 31, 2024, Expand Energy Corporation's interest coverage ratio fluctuated significantly. The company experienced negative ratios in the early periods, indicating a potential inability to cover interest expenses with operating income.
The trend improved in the following quarters, with significant positive ratios starting from March 31, 2021, indicating a healthier financial position and a strengthened ability to handle interest payments.
However, the ratio declined again in the first quarter of 2022 and remained relatively stable but lower in subsequent periods, potentially signaling a slight decrease in the company's earning capacity relative to its interest expense burden.
Overall, while the company showed an improvement in its interest coverage ratio over time, investors should closely monitor the trend to assess the company's financial health and its ability to meet future interest obligations.