Magnolia Oil & Gas Corp (MGY)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		0.53	0.42	0.37	0.70	1.42
Number of days of payables	days	692.33	869.13	978.43	521.33	256.43

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.53
= 692.33

The number of days of payables for Magnolia Oil & Gas Corp has shown an upward trend over the past five years. In December 2020, the company took on average 256.43 days to pay its suppliers, but this figure increased significantly to 521.33 days by December 2021. Subsequently, there was a further rise in the number of days of payables to 978.43 days by December 2022. However, in the following year, there was a slight decrease in the average number of days of payables to 869.13 days by December 2023. Finally, by December 2024, the number of days of payables decreased to 692.33 days, indicating a potential improvement in the company's ability to manage its payables effectively. The increasing trend in the number of days of payables may raise concerns about the company's liquidity and its relationships with suppliers, but the recent decrease could signal efforts to optimize working capital management.