Magnolia Oil & Gas Corp (MGY)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 92.74% | 93.39% | 95.53% | 91.70% | 82.28% |
| Operating profit margin | 38.91% | 43.56% | 63.37% | 55.88% | -355.75% |
| Pretax margin | 35.10% | 40.38% | 53.14% | 39.52% | -237.89% |
| Net profit margin | 27.82% | 31.65% | 52.75% | 38.70% | -223.24% |
Based on the provided data, we can analyze the profitability ratios of Magnolia Oil & Gas Corp as follows:
1. Gross Profit Margin: Magnolia Oil & Gas Corp's gross profit margin has shown a positive trend over the years, increasing from 82.28% in 2020 to 92.74% in 2024. This indicates that the company has been able to effectively control its cost of goods sold and generate higher margins on its products or services.
2. Operating Profit Margin: The operating profit margin of Magnolia Oil & Gas Corp has also improved significantly over the years, starting at -355.75% in 2020 and reaching 38.91% in 2024. This suggests that the company has been able to streamline its operating expenses and enhance its operational efficiency.
3. Pretax Margin: The pretax margin, which represents the company's profitability before taxes, has shown a consistent increase from 2020 to 2024. Starting at -237.89% in 2020, it reached 35.10% in 2024. This indicates that Magnolia Oil & Gas Corp has been successful in managing its pre-tax income effectively.
4. Net Profit Margin: The net profit margin, reflecting the company's profitability after all expenses have been deducted including taxes, has displayed a positive trend from 2020 to 2024. Although the net profit margin decreased slightly from 2022 to 2024, it still reflects a healthy profitability level for the company.
Overall, the trend analysis of these profitability ratios suggests that Magnolia Oil & Gas Corp has been able to improve its profitability over the years through effective cost management, operational efficiency, and prudent financial planning.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.15% | 19.39% | 41.74% | 34.50% | -132.49% |
| Return on assets (ROA) | 12.98% | 14.09% | 34.74% | 23.89% | -83.14% |
| Return on total capital | 22.20% | 25.64% | 54.61% | 50.02% | -205.02% |
| Return on equity (ROE) | 19.13% | 22.95% | 56.71% | 51.09% | -220.45% |
Based on the provided data, we can analyze the profitability ratios of Magnolia Oil & Gas Corp as follows:
1. Operating Return on Assets (Operating ROA):
- The Operating ROA has shown a significant improvement from -132.49% in December 2020 to 41.74% in December 2022 before decreasing slightly to 18.15% by December 2024. This indicates that the company's operating income generated from its assets has improved over the years, with a slight decline in the most recent period.
2. Return on Assets (ROA):
- The ROA has also exhibited a positive trend, increasing from -83.14% in December 2020 to 34.74% in December 2022 and then declining to 12.98% by December 2024. This ratio reflects the company's ability to generate profits from its total assets, with fluctuations across the years.
3. Return on Total Capital:
- The Return on Total Capital has been on an upward trajectory, rising from -205.02% in December 2020 to 54.61% in December 2022, before falling to 22.20% by December 2024. This metric highlights the efficiency with which the company is utilizing its total capital to generate returns for its stakeholders.
4. Return on Equity (ROE):
- The ROE demonstrates a similar pattern of improvement, increasing from -220.45% in December 2020 to 56.71% in December 2022 and then decreasing to 19.13% by December 2024. This ratio signifies the company's profitability in relation to shareholder equity and portrays the fluctuations in shareholder returns over the years.
Overall, the profitability ratios of Magnolia Oil & Gas Corp indicate varying levels of performance in terms of generating earnings from its assets, capital, and equity, with fluctuations observed across the years. Further analysis and comparison with industry averages would provide better insights into the company's financial health and performance.