Magnolia Oil & Gas Corp (MGY)

Working capital turnover

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
Revenue (ttm) US$ in thousands 1,315,886 1,311,905 1,294,448 1,238,014 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
Total current assets US$ in thousands 410,824 415,198 453,866 597,535 591,273 805,748 814,840 820,346 850,747 898,960 750,480 530,252 517,918 376,753 312,861 289,218 281,526 214,862 182,504 229,245
Total current liabilities US$ in thousands 290,261 281,523 354,959 350,011 314,887 303,705 263,000 311,244 340,273 341,972 333,027 238,734 218,545 190,685 167,949 125,935 128,949 124,462 120,313 170,700
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

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,315,886K ÷ ($410,824K – $290,261K)
= 10.91

The working capital turnover ratio for Magnolia Oil & Gas Corp has shown fluctuations over the reporting periods in the provided data. The ratio is calculated by dividing revenue by average working capital, representing how effectively the company generates revenue from its working capital.

From March 31, 2020, to June 30, 2020, the working capital turnover decreased from 15.46 to 11.97, indicating a decline in the efficiency of generating revenue from working capital. This trend continued, with further decreases observed in subsequent periods, reaching a low of 2.50 by September 30, 2023.

However, there was a slight improvement in the ratio from December 31, 2023, to June 30, 2024, where it increased from 4.44 to 13.09. This upturn suggests that the company improved its ability to utilize working capital to generate revenue efficiently during this period.

Overall, the working capital turnover ratio for Magnolia Oil & Gas Corp has shown variability, indicating fluctuations in the efficiency of utilizing working capital to drive revenue generation. Monitoring this ratio can provide insights into the company's liquidity management and operational efficiency.