Magnolia Oil & Gas Corp (MGY)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | — | — | — | — | — | — | — | — | — | — | — | — | 145.62 | — | — | — | — | — | — | 2,306.08 |
| Receivables turnover | 8.90 | 9.63 | 7.38 | 6.32 | 6.47 | 6.71 | 10.34 | 10.72 | 9.92 | 8.08 | 5.98 | 6.94 | 7.20 | 6.93 | 6.19 | 5.31 | 6.64 | 10.14 | 12.30 | 11.64 |
| Payables turnover | 0.53 | 0.57 | 0.40 | 0.39 | 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 |
| Working capital turnover | 10.91 | 9.81 | 13.09 | 5.00 | 4.44 | 2.50 | 2.57 | 3.19 | 3.32 | 3.01 | 3.54 | 4.28 | 3.60 | 4.85 | 5.09 | 3.49 | 3.55 | 6.87 | 11.97 | 15.46 |
The activity ratios of Magnolia Oil & Gas Corp provide insights into the efficiency of its operations in managing inventory, collecting receivables, paying payables, and utilizing working capital.
1. Inventory Turnover: The inventory turnover ratio measures how effectively the company is selling its inventory. With a significant value of 2,306.08 as of March 31, 2020, followed by intermittent data, and a more recent figure of 145.62 as of December 31, 2021, there may have been fluctuations in the company's inventory management efficiency over the years.
2. Receivables Turnover: This ratio indicates how quickly the company collects outstanding receivables. Magnolia Oil & Gas Corp's receivables turnover has shown variations, with higher figures in some periods (e.g., 12.30 as of June 30, 2020) and lower ratios in others (e.g., 5.31 as of March 31, 2021). The latest available value is 8.90 as of December 31, 2024.
3. Payables Turnover: The payables turnover ratio reflects how efficiently the company pays its suppliers. Magnolia Oil & Gas Corp's payables turnover has decreased over time, indicating a longer time taken to settle its payables. The ratio declined from 31.76 as of December 31, 2020, to 0.53 as of December 31, 2024.
4. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate sales. Magnolia Oil & Gas Corp's working capital turnover has fluctuated, suggesting changes in the efficiency of utilizing its working capital. The ratio ranged from 2.50 as of September 30, 2023, to 13.09 as of June 30, 2024, indicating varying levels of efficiency in working capital utilization.
Overall, the analysis of these activity ratios provides insights into Magnolia Oil & Gas Corp's operational efficiency and effectiveness in managing its resources for business activities.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | — | — | — | — | — | — | 2.51 | — | — | — | — | — | — | 0.16 |
| Days of sales outstanding (DSO) | days | 41.02 | 37.90 | 49.47 | 57.79 | 56.43 | 54.39 | 35.30 | 34.04 | 36.78 | 45.19 | 61.03 | 52.58 | 50.69 | 52.63 | 58.95 | 68.78 | 55.00 | 36.00 | 29.66 | 31.36 |
| Number of days of payables | days | 692.33 | 642.06 | 912.84 | 935.23 | 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 |
The analysis of Magnolia Oil & Gas Corp's activity ratios reveals the following:
1. Days of Inventory on Hand (DOH): The company had 0.16 days of inventory on hand as of March 31, 2020. However, data is unavailable for the remaining quarters up to December 31, 2024, except for December 31, 2021, when the DOH increased to 2.51 days. The lack of updated information for subsequent periods restricts a comprehensive assessment of inventory management efficiency.
2. Days of Sales Outstanding (DSO): The DSO indicates how long it takes for the company to collect payment after a sale. Magnolia Oil & Gas Corp's DSO fluctuated over the quarters, with the highest recorded DSO of 68.78 days in March 31, 2021 and the lowest at 34.04 days in March 31, 2023. A declining trend in DSO from 2021 to 2024 suggests improved accounts receivable management efficiency.
3. Number of Days of Payables: The number of days of payables represents how long it takes the company to pay its suppliers. Magnolia Oil & Gas Corp's data show a significant increase in the number of days of payables, starting at 15.80 days as of March 31, 2020, and escalating to 692.33 days as of December 31, 2024. This growing trend indicates the company is taking significantly longer to pay its suppliers, which could impact relationships and potential future credit terms.
In conclusion, the analysis of Magnolia Oil & Gas Corp's activity ratios reveals varying efficiency levels in inventory management, accounts receivable collection, and accounts payable. Monitoring these ratios is crucial for assessing operational performance and liquidity management.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 0.74 | 0.89 | 1.03 | 1.11 | 1.22 | 1.12 | 1.00 | 0.89 | 0.75 | 0.63 | 0.50 | 0.47 | 0.53 | 0.63 | 0.75 |
| Total asset turnover | 0.47 | 0.47 | 0.46 | 0.44 | 0.45 | 0.47 | 0.55 | 0.63 | 0.66 | 0.73 | 0.71 | 0.69 | 0.62 | 0.57 | 0.49 | 0.39 | 0.37 | 0.43 | 0.53 | 0.61 |
The fixed asset turnover ratio for Magnolia Oil & Gas Corp has shown a declining trend from March 2020 to September 2023, indicating that the company's ability to generate revenue from its fixed assets was decreasing during this period. However, from December 2023 to June 2023, the ratio improved before becoming unavailable for the subsequent periods.
On the other hand, the total asset turnover ratio shows a similar trend with a downward movement from March 2020 to March 2023, suggesting that Magnolia Oil & Gas Corp was less efficient in utilizing its total assets to generate sales during these years. Nevertheless, there was an uptick in the ratio from March 2023 to June 2024, which could indicate an improvement in the company's asset utilization efficiency during that period.
Overall, the analysis of the long-term activity ratios for Magnolia Oil & Gas Corp suggests fluctuations in its asset turnover efficiency over the years, indicating the need for further examination to understand the underlying factors driving these trends.