Magnolia Oil & Gas Corp (MGY)

Quick 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	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	—	—	—	—	—	—
Receivables	US$ in thousands	189,705	186,763	137,379	151,571	170,770	207,718	247,402	179,652	149,769	130,100	119,241	107,229	81,559	61,243	60,525	77,744	105,775	120,664	126,940	107,388
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
Quick ratio		1.88	2.65	3.09	2.63	2.49	2.62	2.25	2.20	2.36	1.97	1.84	2.27	2.13	1.86	1.47	1.31	1.65	1.50	1.11	1.00

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($401,121K + $—K + $189,705K) ÷ $314,887K
= 1.88

The quick ratio of Magnolia Oil & Gas Corp has shown some fluctuation over the past few years. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets. A quick ratio above 1 indicates the company has enough liquid assets to cover its short-term obligations.

From the data provided:
- The quick ratio has generally remained above 1, indicating the company's ability to meet its short-term liabilities using its quick assets.
- The quick ratio ranged from 1.00 to 3.09 over the period, with some variability observed.
- The highest quick ratio of 3.09 was reported in June 2023, indicating a strong ability to meet short-term obligations with quick assets.
- The lowest quick ratio of 1.00 was reported in March 2019, which was the only instance where the ratio fell below 1 in recent years, suggesting some liquidity risk at that time.

Overall, the trend in the quick ratio indicates that Magnolia Oil & Gas Corp has generally maintained a healthy liquidity position, with fluctuations in the ratio possibly reflecting changes in the company's working capital management or asset composition. It is crucial for investors and analysts to monitor the quick ratio as part of assessing the company's short-term liquidity and financial health.