Magnolia Oil & Gas Corp (MGY)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — — — — — — — — 145.62 — — — — — — 2,306.08 — 46.11 — 6.45
Receivables turnover 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 8.91 7.97 7.05 7.93
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 — — —
Working capital turnover 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 7.98 9.43 30.47 45.35

Based on the activity ratios provided for Magnolia Oil & Gas Corp, we can observe the following trends:

1. Inventory Turnover:
- The inventory turnover ratio is not available for recent periods; however, it showed significant variability in previous periods, ranging from 2.45 to 2,306.08 times.
- The lack of recent data for inventory turnover may indicate a shift in the company's operations or reporting practices.

2. Receivables Turnover:
- The receivables turnover ratio has shown variability over time, with values fluctuating between 5.31 and 12.30.
- Higher receivables turnover signifies that the company is efficient in collecting outstanding receivables, which is a positive sign for cash flow management.

3. Payables Turnover:
- The payables turnover ratio has ranged from 0.34 to 31.76, showing fluctuation in the company's payment efficiency to suppliers.
- A lower payables turnover ratio indicates that the company takes a longer time to pay its suppliers, which might reflect cash flow management strategies or vendor relationships.

4. Working Capital Turnover:
- The working capital turnover ratio has exhibited significant variability, ranging from 2.50 to 45.35, indicating fluctuations in the utilization of working capital to generate sales.
- Higher values of working capital turnover suggest that the company efficiently utilizes its working capital to generate revenue.

In summary, the analysis of Magnolia Oil & Gas Corp's activity ratios reveals fluctuating trends in inventory turnover, receivables turnover, payables turnover, and working capital turnover over the periods examined. The company's ability to efficiently manage its inventory, receivables, payables, and working capital can impact its operational efficiency and financial performance.

Average number of days

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
Days of inventory on hand (DOH) days — — — — — — — — 2.51 — — — — — — 0.16 — 7.92 — 56.61
Days of sales outstanding (DSO) days 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 40.98 45.81 51.78 46.01
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 — — —

The Days of Inventory on Hand (DOH) for Magnolia Oil & Gas Corp fluctuated over the periods provided, with significant variability noted. The company had minimal to no inventory on hand for most quarters, with occasional spikes seen in the past, such as 2.51 days at the end of December 2021 and a substantial 56.61 days at the end of March 2019.

In terms of Days of Sales Outstanding (DSO), the company showed inconsistency in collecting its receivables efficiently. DSO ranged from as low as 29.66 days in June 2020 to as high as 68.78 days in June 2021, with a recent figure of 56.43 days as of December 2023. This indicates that Magnolia Oil & Gas Corp may need to focus on improving its accounts receivable collection process.

The Number of Days of Payables for the company also varied widely across different periods, indicating changes in the company's payment terms or relationships with suppliers. The company had an exceptionally long payment cycle in some quarters, such as 1,059.16 days in September 2022, but significantly shorter periods in others, like 11.49 days in March 2021.

Overall, these activity ratios suggest that Magnolia Oil & Gas Corp has experienced fluctuating levels of efficiency in managing its inventory, collecting receivables, and paying its suppliers over the analyzed periods. Further investigation into the company's operational processes and liquidity management may be warranted to address these fluctuations.

Long-term

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
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 0.30 354.79 478.27 4,759.10
Total asset turnover 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 0.27 0.27 0.25 0.25

The Fixed Asset Turnover ratio for Magnolia Oil & Gas Corp has fluctuated over the analyzed period, with values ranging from 0.30 to 1.22. This ratio measures how efficiently the company is generating sales from its fixed assets. Generally, a higher ratio indicates better utilization of fixed assets to generate revenue.

On the other hand, the Total Asset Turnover ratio has also varied over time, with values between 0.25 and 0.73. This ratio reflects the efficiency of the company in generating sales from all its assets, including fixed and current assets. A higher ratio suggests that the company is effectively utilizing its total assets to generate revenue.

Overall, the trends in these long-term activity ratios suggest that Magnolia Oil & Gas Corp has experienced fluctuations in its efficiency in generating sales from both fixed and total assets. It is important for the company to closely monitor these ratios and strive for consistency and improvement in asset utilization to enhance overall performance.