Magnolia Oil & Gas Corp (MGY)
Number of days of payables
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 0.42 | 0.37 | 0.70 | 1.42 | 1.13 | |
| Number of days of payables | days | 869.13 | 978.43 | 521.33 | 256.43 | 322.53 |
December 31, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 0.42
= 869.13
The number of days of payables for Magnolia Oil & Gas Corp has exhibited fluctuations over the past five years, ranging from a low of 256.43 days at the end of 2020 to a high of 978.43 days at the end of 2022. The metric measures the average number of days it takes for the company to pay its suppliers and reflects the efficiency of its working capital management.
In 2021, the number of days of payables decreased significantly to 521.33 days from the previous year, indicating a potential improvement in the company's ability to settle its outstanding obligations within a shorter period. However, this improvement was short-lived as the metric increased substantially in 2022, suggesting a possible extension in the payment terms or challenges in managing cash flow efficiently.
The sharp increase in the number of days of payables in 2022, followed by a slight decrease in 2023 to 869.13 days, may indicate increased pressure on liquidity and cash flow management during the former year. Overall, a high number of days of payables may signify a company's reliance on trade credit to fund its operations, while a low number may reflect a more efficient use of working capital but potentially strain relationships with suppliers.
Peer comparison
Dec 31, 2023