Magnolia Oil & Gas Corp (MGY)

Total asset 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
Total assets	US$ in thousands	2,756,220	2,652,490	2,566,720	2,576,050	2,572,580	2,300,640	2,086,790	1,794,610	1,746,740	1,585,780	1,498,340	1,455,850	1,453,420	1,434,280	1,413,080	1,490,830	3,466,410	3,533,130	3,531,130	3,437,970
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

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,226,979K ÷ $2,756,220K
= 0.45

Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. It is calculated by dividing the company's total revenue by its average total assets. In the case of Magnolia Oil & Gas Corp, the total asset turnover ratio has fluctuated over the past few quarters.

The total asset turnover ratio ranged from 0.25 to 0.73 over the observed period. It gradually increased from 0.25 in the first quarter of 2019 to a peak of 0.73 in the third quarter of 2022 before slightly declining to 0.45 in the last quarter of 2023. This suggests that the company's ability to generate revenue from its total assets has fluctuated over time.

A total asset turnover ratio below 1 indicates that Magnolia Oil & Gas Corp is not generating enough revenue relative to its total assets. A lower ratio could be a sign of inefficiency in asset utilization. Conversely, a higher ratio would indicate that the company is effectively using its assets to generate revenue.

It is essential for Magnolia Oil & Gas Corp to monitor and improve its total asset turnover ratio to ensure optimal asset utilization and profitability in the long run. Conducting a detailed analysis of the underlying factors affecting this ratio, such as operational efficiency and revenue generation, can help the company make informed decisions to enhance its financial performance.