Magnolia Oil & Gas Corp (MGY)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 93.39% | 95.53% | 91.70% | 82.28% | 89.82% |
| Operating profit margin | 43.56% | 63.37% | 55.88% | -355.75% | 13.53% |
| Pretax margin | 40.38% | 53.14% | 39.52% | -237.89% | 6.89% |
| Net profit margin | 31.65% | 52.75% | 38.70% | -223.24% | 5.33% |
Based on the profitability ratios of Magnolia Oil & Gas Corp over the past five years, we can observe the following trends:
1. Gross Profit Margin:
- The gross profit margin has shown fluctuations over the years, ranging from a high of 95.53% in 2022 to a low of 82.28% in 2020.
- Despite the fluctuations, the company has maintained relatively high gross profit margins, indicating efficient cost management and pricing strategies.
2. Operating Profit Margin:
- The operating profit margin has also varied significantly, with a notable decline in 2020 to a negative figure of -355.75%.
- However, in the subsequent years, the operating profit margin recovered, reaching a peak of 63.37% in 2022.
- This suggests that the company faced challenges in 2020 but implemented effective measures to improve operational efficiency and profitability.
3. Pretax Margin:
- The pretax margin followed a similar pattern to the operating profit margin, experiencing a sharp decline in 2020 to a negative figure of -237.89%.
- Subsequent years saw a recovery in the pretax margin, peaking at 53.14% in 2022.
- This indicates that the company successfully addressed the challenges faced in 2020 and improved its pre-tax profitability.
4. Net Profit Margin:
- The net profit margin also exhibited significant fluctuations, with a particularly negative performance in 2020 at -223.24%.
- In contrast, the net profit margin rebounded in the following years, reaching a high of 52.75% in 2022.
- This suggests that the company not only recovered from the losses in 2020 but also achieved substantial profitability in the subsequent years.
In conclusion, while Magnolia Oil & Gas Corp experienced profitability challenges in 2020, the company demonstrated resilience and effective management strategies in the following years, as evidenced by the improvements in its operating, pretax, and net profit margins. This indicates the company's ability to adapt to challenging conditions and enhance its overall profitability over time.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.39% | 41.74% | 34.50% | -132.49% | 3.68% |
| Return on assets (ROA) | 14.09% | 34.74% | 23.89% | -83.14% | 1.45% |
| Return on total capital | 25.64% | 54.61% | 50.02% | -205.02% | 5.89% |
| Return on equity (ROE) | 22.95% | 56.71% | 51.09% | -220.45% | 2.83% |
Magnolia Oil & Gas Corp's profitability ratios have shown significant fluctuations over the past five years.
The Operating Return on Assets (Operating ROA) has been positive and relatively stable between 2019 and 2023, ranging from 3.68% to 41.74%. This ratio measures the operating profit generated per dollar of assets, indicating the company's efficiency in utilizing its assets to generate operating income.
The Return on Assets (ROA) has also displayed variability but has generally improved over the years, with values ranging from -83.14% to 34.74%. ROA reflects the overall profitability of the company by measuring the net income generated per dollar of assets.
The Return on Total Capital has fluctuated widely, from -205.02% to 54.61%, showing inconsistency in the company's ability to generate returns on its total capital employed.
The Return on Equity (ROE) has experienced significant fluctuations as well, ranging from -220.45% to 56.71%. ROE measures the return earned by the company for each dollar of shareholder equity, reflecting the company's ability to generate profits from shareholders' investments.
Overall, the profitability ratios of Magnolia Oil & Gas Corp indicate a mix of positive trends and fluctuations, highlighting the company's varying levels of efficiency and profitability in recent years. Further analysis of the underlying factors behind these ratios would be necessary to assess the company's financial health accurately.