Magnolia Oil & Gas Corp (MGY)

Payables turnover

		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
Cost of revenue (ttm)	US$ in thousands	81,141	78,443	78,636	78,419	75,671	73,957	69,542	83,605	89,554	96,614	102,380	89,804	1,989,136	1,987,576	1,988,151	1,990,149	88,512	94,751	105,440	82,901
Payables	US$ in thousands	193,212	183,341	166,234	190,808	202,846	214,609	186,844	134,652	127,909	107,460	92,134	74,125	62,626	63,475	64,534	86,154	79,428	—	—	—
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	—	—	—

December 31, 2023 calculation

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

The payables turnover ratio for Magnolia Oil & Gas Corp has exhibited fluctuations over the past few quarters. The ratio measures how efficiently the company pays its suppliers. A higher ratio indicates that the company is paying its suppliers more frequently.

In the recent quarters, the payables turnover ratio has shown a decreasing trend from 0.42 in December 2023 to 0.34 in September 2022 before experiencing a sudden increase to 31.76 in December 2021. Such a drastic jump may be due to certain unique circumstances or accounting adjustments rather than a sustainable improvement in payment practices.

It is essential to monitor the payables turnover ratio over time to identify any anomalies or trends that could signal changes in the company's payment policies, liquidity position, or supplier relationships. Further analysis, in conjunction with other financial metrics, can provide insights into Magnolia Oil & Gas Corp's financial health and management of working capital.