Magnolia Oil & Gas Corp (MGY)

Operating profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	534,485	1,073,790	602,594	-1,925,670	127,502
Revenue	US$ in thousands	1,226,980	1,694,490	1,078,350	541,303	942,156
Operating profit margin		43.56%	63.37%	55.88%	-355.75%	13.53%

December 31, 2023 calculation

Operating profit margin = Operating income ÷ Revenue
= $534,485K ÷ $1,226,980K
= 43.56%

Magnolia Oil & Gas Corp's operating profit margin has shown fluctuations over the past five years. In 2023, the operating profit margin was 43.56%, indicating that 43.56% of the company's revenues were converted into operating profit. This represents a decrease from the previous year's operating profit margin of 63.37%. The significant decline in operating profit margin from 2022 to 2023 may raise some concerns about the company's operational efficiency and profitability.

In 2021, Magnolia Oil & Gas Corp had an operating profit margin of 55.88%, showing a slight decrease compared to the previous year. However, in 2020, the company reported a negative operating profit margin of -355.75%, indicating that the company incurred operating losses that year. This drastic decline in profitability in 2020 is a red flag and requires further investigation to understand the reasons behind such a significant loss.

In 2019, the operating profit margin was 13.53%, indicating a moderate level of profitability compared to the subsequent years. Overall, Magnolia Oil & Gas Corp's operating profit margin has been volatile, with significant fluctuations observed in the past five years. Further analysis of the company's financial performance, cost structure, and revenue generation strategies would be necessary to determine the underlying factors impacting the fluctuating operating profit margins.