Magnolia Oil & Gas Corp (MGY)

Receivables 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
Revenue (ttm)	US$ in thousands	1,226,979	1,253,393	1,420,678	1,625,036	1,694,493	1,677,604	1,479,683	1,247,084	1,078,352	902,231	738,256	569,045	541,303	620,995	744,727	904,846	942,155	961,486	894,850	851,879
Receivables	US$ in thousands	189,705	186,763	137,379	151,571	170,770	207,718	247,402	179,652	149,769	130,100	119,241	107,229	81,559	61,243	60,525	77,744	105,775	120,664	126,940	107,388
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

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $1,226,979K ÷ $189,705K
= 6.47

The receivables turnover ratio measures how efficiently a company is able to collect payments owed by its customers. A higher ratio indicates a faster turnover of receivables, which is generally preferable as it signifies that the company is collecting payments quickly.

Looking at Magnolia Oil & Gas Corp's receivables turnover over the past five quarters, we observe fluctuating values ranging from 5.31 to 12.30, with an average of around 8.21. Generally, a higher receivables turnover ratio suggests that the company is effectively managing its accounts receivable and converting them into cash in a timely manner.

In particular, in Jun 30, 2020, and Mar 31, 2020, the company experienced significantly high receivables turnover ratios of 12.30 and 11.64, respectively. This may indicate efficient credit control systems or prompt collection procedures during those periods.

On the other hand, in Dec 31, 2020, and Sep 30, 2020, the ratios dropped to 6.64 and 10.14, respectively. This suggests a slower collection of receivables during those quarters, which could potentially impact the company's cash flow and liquidity.

Overall, Magnolia Oil & Gas Corp has shown varying levels of efficiency in collecting its receivables over the past quarters. It is essential for the company to strive for consistent improvement in managing its accounts receivable to ensure steady cash flows and financial stability.