Magnolia Oil & Gas Corp (MGY)

Current ratio

		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
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
Current ratio		1.42	1.47	1.28	1.71	1.88	2.65	3.10	2.64	2.50	2.63	2.25	2.22	2.37	1.98	1.86	2.30	2.18	1.73	1.52	1.34

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 fluctuations over the reported periods. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive indicator of financial health.

From March 31, 2020, to December 31, 2020, the current ratio steadily increased from 1.34 to 2.18, showing an improvement in the company's ability to meet its short-term obligations. The trend continued to be positive through March 31, 2021, with a current ratio of 2.30, indicating a strong liquidity position.

However, from June 30, 2021, to December 31, 2021, there was a slight decrease in the current ratio to 1.86 and then a subsequent increase to 2.37 by December 31, 2021. This fluctuation suggests some variability in the company's short-term liquidity position during that period.

The current ratio continued to be favorable at 2.22 as of March 31, 2022, and further improved to 3.10 by June 30, 2023, indicating a significant increase in the company's ability to cover its short-term liabilities.

Subsequently, the current ratio declined to 1.88 by December 31, 2023, and further dropped to 1.28 by June 30, 2024. These decreases suggest a potential strain on the company's liquidity position during those periods.

As of December 31, 2024, the current ratio improved slightly to 1.42, but it remained below the level seen in earlier periods. Overall, while Magnolia Oil & Gas Corp's current ratio has shown fluctuations over time, it is important for investors and analysts to monitor these changes to assess the company's short-term liquidity position and financial health.