Magnolia Oil & Gas Corp (MGY)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	366,027	388,301	893,837	417,282	-1,208,390
Revenue	US$ in thousands	1,315,890	1,226,980	1,694,490	1,078,350	541,303
Net profit margin		27.82%	31.65%	52.75%	38.70%	-223.24%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $366,027K ÷ $1,315,890K
= 27.82%

Based on the provided data, Magnolia Oil & Gas Corp's net profit margin has shown significant fluctuations over the years. In December 2020, the company reported a negative net profit margin of -223.24%, indicating that the company incurred a substantial loss relative to its revenues during that period.

However, there has been a marked improvement in the company's performance since then. By December 2021, Magnolia Oil & Gas Corp had turned around its profitability significantly, achieving a net profit margin of 38.70%, indicating that the company was able to generate a profit of 38.70 cents for every dollar of revenue.

In the following years, the company continued to demonstrate strong performance in terms of profitability. By December 2022 and December 2023, Magnolia Oil & Gas Corp's net profit margins further increased to 52.75% and 31.65%, respectively. This suggests that the company was able to efficiently control its costs and expenses while effectively leveraging its revenue streams.

However, there was a slight decline in the net profit margin by December 2024, where it stood at 27.82%. While this figure is still indicative of strong profitability, it may signal a potential need for the company to closely manage its expenses to sustain its profit margins in the future.

Overall, Magnolia Oil & Gas Corp's net profit margin trend indicates a mix of challenges and successes, highlighting the importance of consistent financial management and strategic decision-making to maintain and enhance profitability in the dynamic energy sector.