Magnolia Oil & Gas Corp (MGY)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	81,141	75,671	89,554	89,141	89,887
Payables	US$ in thousands	193,212	202,846	127,909	62,626	79,428
Payables turnover		0.42	0.37	0.70	1.42	1.13

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $81,141K ÷ $193,212K
= 0.42

The payables turnover ratio for Magnolia Oil & Gas Corp has fluctuated over the past five years, ranging from 0.37 to 1.42. A lower payables turnover ratio indicates that the company is taking longer to pay its suppliers and vendors, which may suggest potential liquidity issues or inefficient management of payables.

In contrast, a higher payables turnover ratio indicates that the company is paying its suppliers more frequently or promptly, which could reflect strong liquidity position or effective working capital management.

Based on the trend observed, there has been a downward trend in the payables turnover ratio from 2019 to 2023, decreasing from 1.13 to 0.42. This may indicate that Magnolia Oil & Gas Corp is taking longer to pay its payables over time, which could potentially affect relationships with suppliers or signal changes in the company's payment policies.

Overall, it is essential for stakeholders to monitor the payables turnover ratio continuously to assess the company's liquidity position, efficiency in managing payables, and relationships with suppliers.