Magnolia Oil & Gas Corp (MGY)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	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	847,629	866,342	789,410	568,991
Revenue (ttm)	US$ in thousands	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	942,155	961,486	894,850	851,879
Gross profit margin		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%	89.97%	90.10%	88.22%	66.79%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $1,145,838K ÷ $1,226,979K
= 93.39%

The gross profit margin of Magnolia Oil & Gas Corp has shown fluctuations over the past few quarters. From Dec 31, 2019, to Jun 30, 2022, the gross profit margin remained relatively stable and high, ranging from 88.22% to 95.84%. However, there was a significant decline to negative values in the gross profit margin for the last three quarters of 2022 and the first quarter of 2023, indicating that the company's cost of goods sold exceeded its revenues during these periods.

The gross profit margin then started to recover, reaching 93.39% by the end of Dec 31, 2023. This improvement suggests that the company was able to control its costs and achieve a healthier balance between revenue and cost of goods sold in the most recent quarter. The varying trend in the gross profit margin highlights the importance of closely monitoring cost management strategies and revenue generation efforts to maintain profitability in the oil and gas industry.