Magnolia Oil & Gas Corp (MGY)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	401,121	618,466	676,568	667,284	675,441	689,539	501,891	346,396	366,982	245,023	190,282	178,194	192,561	148,533	116,850	146,492	182,633	164,489	96,709	76,307
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	21,789	—	—	—	—	—	—
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
Cash ratio		1.27	2.04	2.57	2.14	1.98	2.02	1.51	1.45	1.68	1.28	1.13	1.41	1.49	1.37	0.97	0.86	1.04	0.86	0.48	0.41

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($401,121K + $—K) ÷ $314,887K
= 1.27

The cash ratio measures a company's ability to cover its short-term obligations with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term debt obligations.

Analyzing the cash ratio of Magnolia Oil & Gas Corp over the past few quarters, we can observe some fluctuations. The company's cash ratio ranged from 0.41 to 2.57 during the period from March 2019 to December 2023.

In the most recent quarter, December 2023, the cash ratio stood at 1.27, indicating that Magnolia Oil & Gas Corp had enough cash to cover 1.27 times of its short-term liabilities. This ratio suggests a moderate ability to meet immediate financial obligations using cash and cash equivalents.

Throughout the period under review, the cash ratio generally trended upwards from the lower values observed in 2019 and early 2020, reaching a peak of 2.57 in June 2023. This increase in the cash ratio could signal an improvement in the company's liquidity position and its ability to weather short-term economic uncertainties.

However, a slight decline was noted in the recent quarters, with the cash ratio decreasing from 2.57 in June 2023 to 1.27 in December 2023. This decline may warrant further investigation into whether the company faced cash flow challenges or increased short-term liabilities during this period.

Overall, while Magnolia Oil & Gas Corp's cash ratio has shown fluctuations over the quarters, it is important for stakeholders to monitor the company's liquidity position to ensure it can meet its short-term obligations effectively.