Magnolia Oil & Gas Corp (MGY)

Working capital 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 current assets	US$ in thousands	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	293,218	292,255	230,497	203,245
Total current liabilities	US$ in thousands	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	175,208	190,311	201,131	184,460
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

December 31, 2023 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $1,226,979K ÷ ($591,273K – $314,887K)
= 4.44

The working capital turnover of Magnolia Oil & Gas Corp has fluctuated over the past few years, ranging from a low of 2.50 to a high of 45.35. This ratio measures how efficiently the company is utilizing its working capital to generate sales revenue.

A higher working capital turnover ratio indicates that the company is able to generate sales more efficiently using its current assets. In the recent periods, the company has shown improvements in this aspect, with the ratio increasing steadily from 2.50 in Sep 30, 2023 to 4.44 in Dec 31, 2023.

However, it is important to note the significant fluctuations in the ratio over the years, indicating potential changes in the company's working capital management and efficiency in utilizing current assets. A thorough analysis of the underlying reasons for these fluctuations would provide additional insights into the company's financial performance and operational efficiency.