Magnolia Oil & Gas Corp (MGY)

Gross profit margin

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
Gross profit (ttm) US$ in thousands 1,220,423 1,218,506 1,203,710 1,152,307 1,145,838 1,174,950 1,342,042 1,546,617 1,618,822 1,607,877 1,412,908 1,164,922 988,797 794,589 626,311 471,000 -1,454,635 -1,372,600 -1,249,443 -1,091,322
Revenue (ttm) US$ in thousands 1,315,886 1,311,905 1,294,448 1,238,014 1,226,979 1,253,393 1,420,678 1,625,036 1,694,493 1,677,604 1,479,683 1,247,084 1,078,352 902,231 738,256 569,045 541,303 620,995 744,727 904,846
Gross profit margin 92.75% 92.88% 92.99% 93.08% 93.39% 93.74% 94.46% 95.17% 95.53% 95.84% 95.49% 93.41% 91.70% 88.07% 84.84% 82.77% -268.73% -221.03% -167.77% -120.61%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,220,423K ÷ $1,315,886K
= 92.75%

The gross profit margin of Magnolia Oil & Gas Corp has undergone a significant positive turnaround over the period from March 31, 2020, to December 31, 2024. The company initially experienced negative gross profit margins, reaching as low as -268.73% by December 31, 2020. This indicates that the cost of goods sold exceeded the revenues earned during this period.

However, starting from March 31, 2021, the gross profit margin began to improve substantially, turning positive and increasing steadily over the subsequent quarters. By December 31, 2024, the gross profit margin had reached a healthy level of 92.75%, reflecting strong operational efficiency and effective cost management within the company.

The consistent upward trend in the gross profit margin demonstrates Magnolia Oil & Gas Corp's ability to enhance profitability, optimize its production processes, and generate higher revenues relative to its production costs. This improvement in gross profit margin is a positive indication of the company's financial health and operational performance over the analyzed period.