Magnolia Oil & Gas Corp (MGY)

Operating 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
Operating income (ttm)	US$ in thousands	534,487	594,306	757,923	964,849	1,073,786	1,077,893	937,636	738,568	602,594	443,245	293,693	138,567	-1,925,669	-1,945,649	-1,939,921	-1,870,354	127,501	178,926	191,105	248,805
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
Operating profit margin		43.56%	47.42%	53.35%	59.37%	63.37%	64.25%	63.37%	59.22%	55.88%	49.13%	39.78%	24.35%	-355.75%	-313.31%	-260.49%	-206.70%	13.53%	18.61%	21.36%	29.21%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $534,487K ÷ $1,226,979K
= 43.56%

The operating profit margin of Magnolia Oil & Gas Corp has shown significant fluctuations over the past several quarters. The trend indicates a general decline in operating profit margin from the end of 2020 through the first quarter of 2021, with margins falling into negative territory during the last quarter of 2020 and the first quarter of 2021. However, starting from the second quarter of 2021, there has been a noticeable recovery in operating profit margin, with consecutive increases in profitability seen up until the first quarter of 2023.

The peak operating profit margin was observed in the first quarter of 2023 at 59.37%, indicating a strong financial performance during that period. This upward trend was sustained in the subsequent quarters, reaching the highest level at 63.37% in the second quarter of 2022. However, there was a slight decrease in profitability in the last two quarters of 2022.

It is important to note the drastic fluctuations in operating profit margin in the last quarter of 2020 and the first quarter of 2021, where the operating profit margin dropped significantly into negative figures. This could be indicative of exceptional circumstances or one-time events impacting the company's profitability during that period.

Overall, the operating profit margin analysis of Magnolia Oil & Gas Corp highlights a volatile financial performance, with periods of both strong profitability and significant challenges. Investors and stakeholders should monitor the company's operational efficiency and cost management strategies closely to assess its financial health and sustainability in the future.