Magnolia Oil & Gas Corp (MGY)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	591,273	850,747	517,918	281,526	293,218
Total current liabilities	US$ in thousands	314,887	340,273	218,545	128,949	175,208
Current ratio		1.88	2.50	2.37	2.18	1.67

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $591,273K ÷ $314,887K
= 1.88

The current ratio, which is a measure of a company's ability to meet its short-term obligations with its current assets, for Magnolia Oil & Gas Corp has displayed fluctuating trends over the past five years. In 2023, the current ratio stands at 1.88, indicating a slight decline compared to the previous two years. The 2023 current ratio of 1.88 suggests that the company may have slightly less liquidity to cover its short-term liabilities using its current assets. However, it is still at a level that generally indicates a strong ability to meet those obligations. The company experienced a peak current ratio of 2.50 in 2022, which was a significant improvement from the prior years. This suggests that in 2022, Magnolia Oil & Gas Corp had a relatively higher level of current assets to cover its current liabilities. The current ratio was also healthy in 2021 and 2020 with ratios of 2.37 and 2.18, respectively, indicating a solid liquidity position during those years. In contrast, in 2019, the current ratio was lower at 1.67, implying a relatively weaker ability to cover short-term obligations with current assets. Overall, while there has been some fluctuation in Magnolia Oil & Gas Corp's current ratio over the years, the company has generally maintained a strong liquidity position to meet its short-term obligations.