Stock Analysis on Net
Stock Analysis on Net

Expand Energy Corp. (NASDAQ:EXE)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Expand Energy Corp., decomposition of ROE

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2024 -4.06% = -2.56% × 1.59
Dec 31, 2023 22.55% = 16.83% × 1.34
Dec 31, 2022 54.10% = 31.91% × 1.70
Dec 31, 2021 111.59% = 57.48% × 1.94

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Expand Energy Corp., decomposition of ROE

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 -4.06% = -16.76% × 0.15 × 1.59
Dec 31, 2023 22.55% = 40.00% × 0.42 × 1.34
Dec 31, 2022 54.10% = 34.95% × 0.91 × 1.70
Dec 31, 2021 111.59% = 86.67% × 0.66 × 1.94

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The primary reason for the decrease in return on equity ratio (ROE) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Expand Energy Corp., decomposition of ROE

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2024 -4.06% = — × — × -16.86% × 0.15 × 1.59
Dec 31, 2023 22.55% = 0.78 × 0.97 × 53.27% × 0.42 × 1.34
Dec 31, 2022 54.10% = 1.35 × 0.96 × 26.98% × 0.91 × 1.70
Dec 31, 2021 111.59% = 1.02 × 0.99 × 86.37% × 0.66 × 1.94

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Two-Component Disaggregation of ROA

Expand Energy Corp., decomposition of ROA

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2024 -2.56% = -16.76% × 0.15
Dec 31, 2023 16.83% = 40.00% × 0.42
Dec 31, 2022 31.91% = 34.95% × 0.91
Dec 31, 2021 57.48% = 86.67% × 0.66

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

The primary reason for the decrease in return on assets ratio (ROA) over 2024 year is the decrease in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Expand Energy Corp., decomposition of ROA

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2024 -2.56% = — × — × -16.86% × 0.15
Dec 31, 2023 16.83% = 0.78 × 0.97 × 53.27% × 0.42
Dec 31, 2022 31.91% = 1.35 × 0.96 × 26.98% × 0.91
Dec 31, 2021 57.48% = 1.02 × 0.99 × 86.37% × 0.66

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).

Disaggregation of Net Profit Margin

Expand Energy Corp., decomposition of net profit margin ratio

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2024 -16.76% = — × — × -16.86%
Dec 31, 2023 40.00% = 0.78 × 0.97 × 53.27%
Dec 31, 2022 34.95% = 1.35 × 0.96 × 26.98%
Dec 31, 2021 86.67% = 1.02 × 0.99 × 86.37%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).