Magnolia Oil & Gas Corp (MGY)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		1.42	1.88	2.50	2.37	2.18

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $410,824K ÷ $290,261K
= 1.42

The current ratio of Magnolia Oil & Gas Corp has shown a generally positive trend from 2020 to 2023, increasing from 2.18 to 2.50, indicating a strengthening liquidity position during this period. However, there was a notable decline in the current ratio to 1.88 by the end of 2023, signaling a potential decrease in the company's short-term liquidity compared to the previous year. This was followed by a more significant drop in the current ratio to 1.42 by the end of 2024, which may raise concerns about Magnolia's ability to meet its short-term obligations with its current assets. Monitoring the company's liquidity management practices and assessing the reasons behind the decrease in the current ratio can provide valuable insights into its financial health.