Magnolia Oil & Gas Corp (MGY)

Number of days of payables

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Payables turnover		0.42	0.43	0.47	0.41	0.37	0.34	0.37	0.62	0.70	0.90	1.11	1.21	31.76	31.31	30.81	23.10	1.11	—	—	—
Number of days of payables	days	869.13	853.10	771.60	888.11	978.43	1,059.16	980.67	587.86	521.33	405.98	328.47	301.27	11.49	11.66	11.85	15.80	327.54	—	—	—

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 shown fluctuations over the past few quarters. As of December 31, 2023, the company had an average payment period of 869.13 days, which was a slight increase from the previous quarter's figure of 853.10 days. This indicates that the company takes approximately 2.38 years to pay its trade payables on average.

Looking at the trend over the last few quarters, there has been a general increase in the number of days of payables since the beginning of 2021 when the figure was significantly lower at 11.49 days. This prolonged payment period could signify potential cash flow management issues or strategic decisions to optimize working capital.

It's important to note that a longer number of days of payables may strain relationships with suppliers, leading to potential supply chain disruptions or strained vendor partnerships. Additionally, it could imply that the company is utilizing trade credit as a source of financing, but this approach may have implications for liquidity and overall financial health in the long run.

Overall, monitoring the trend in the number of days of payables and understanding the reasons behind any significant changes is crucial for assessing Magnolia Oil & Gas Corp's financial efficiency and working capital management practices.