Magnolia Oil & Gas Corp (MGY)

Fixed asset turnover

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
Revenue (ttm) US$ in thousands 1,315,886 1,311,905 1,294,448 1,238,014 1,226,979 1,253,393 1,420,678 1,625,036 1,694,493 1,677,604 1,479,683 1,247,084 1,078,352 902,231 738,256 569,045 541,303 620,995 744,727 904,846
Property, plant and equipment US$ in thousands — — — — — 1,682,460 1,599,500 1,582,250 1,533,030 1,374,850 1,319,580 1,248,490 1,216,090 1,195,880 1,171,630 1,147,800 1,149,530 1,169,950 1,181,420 1,209,610
Fixed asset turnover — — — — — 0.74 0.89 1.03 1.11 1.22 1.12 1.00 0.89 0.75 0.63 0.50 0.47 0.53 0.63 0.75

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,315,886K ÷ $—K
= —

The fixed asset turnover of Magnolia Oil & Gas Corp has shown fluctuations over the years. The ratio started at 0.75 on March 31, 2020, decreased to 0.47 by December 31, 2020, and then improved to 1.22 by September 30, 2022. This indicates that the company was generating $0.75 in revenue for every dollar invested in fixed assets in March 2020, but this ratio decreased to $0.47 by December 2020, suggesting a less efficient utilization of fixed assets during that period.

However, the fixed asset turnover ratio began to increase from March 31, 2022, reaching its highest point of 1.22 on September 30, 2022. This sharp increase indicates that the company was able to generate $1.22 in revenue for every dollar invested in fixed assets, showing a significant improvement in efficiency in utilizing fixed assets to generate sales.

Subsequently, the ratio declined to 0.74 by September 30, 2023, and the data is not available for the period after December 31, 2023. This decline may suggest a potential slowdown in operational efficiency in utilizing fixed assets to generate revenue.

In conclusion, the trend in fixed asset turnover for Magnolia Oil & Gas Corp has been characterized by fluctuations, with periods of both improvement and decline in efficiency in utilizing fixed assets to generate sales. Continued monitoring of this ratio will be important to assess the company's operational efficiency and asset utilization in the future.