Magnolia Oil & Gas Corp (MGY)
Working capital turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,315,890 | 1,226,980 | 1,694,490 | 1,078,350 | 541,303 |
| Total current assets | US$ in thousands | 410,824 | 591,273 | 850,747 | 517,918 | 281,526 |
| Total current liabilities | US$ in thousands | 290,261 | 314,887 | 340,273 | 218,545 | 128,949 |
| Working capital turnover | 10.91 | 4.44 | 3.32 | 3.60 | 3.55 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,315,890K ÷ ($410,824K – $290,261K)
= 10.91
The working capital turnover of Magnolia Oil & Gas Corp has shown a fluctuating trend over the past five years. In 2020, the working capital turnover was 3.55, indicating that the company generated $3.55 in revenue for every dollar of working capital invested. This ratio increased slightly to 3.60 in 2021, suggesting improved efficiency in utilizing its working capital.
However, there was a decline in the working capital turnover to 3.32 in 2022, signaling a potential slowdown in the company's ability to generate revenue relative to its working capital. The ratio surged to 4.44 in 2023, indicating a significant improvement in operational efficiency and a better utilization of working capital during that year.
Notably, in 2024, there was a substantial increase in the working capital turnover to 10.91, which reflects a remarkable enhancement in the company's efficiency in generating revenue compared to the working capital invested. This significant surge may indicate more effective management of working capital or a change in business operations that led to a substantial increase in revenue relative to working capital.
Overall, while the working capital turnover of Magnolia Oil & Gas Corp has experienced fluctuations, the latest ratio of 10.91 in 2024 suggests potentially improved operational efficiency and a more effective utilization of working capital during that period. It would be important to monitor future trends to assess the sustainability of this enhanced performance.
Peer comparison
Dec 31, 2024