Magnolia Oil & Gas Corp (MGY)

Operating 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
Operating income (ttm)	US$ in thousands	511,988	526,009	545,130	532,112	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
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
Operating profit margin		38.91%	40.10%	42.11%	42.98%	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%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $511,988K ÷ $1,315,886K
= 38.91%

The operating profit margin of Magnolia Oil & Gas Corp shows a significant improvement over the periods analyzed. The company started with negative margins in the range of -206.70% to -355.75% in the first half of 2020, indicating that operating expenses exceeded revenues by a large margin during that time.

However, there was a remarkable turnaround starting from March 31, 2021, where the operating profit margin became positive at 24.35%. This positive trend continued throughout the subsequent quarters, reaching a peak of 64.25% on September 30, 2022.

From that point on, the operating profit margin remained relatively stable, ranging from 38.91% to 59.37% by the end of December 31, 2024. This consistency in positive operating profit margins indicates that the company has effectively managed its operating expenses and increased its profitability over time, reflecting stronger operational efficiency and financial performance.