Magnolia Oil & Gas Corp (MGY)

Operating return on assets (Operating ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	511,988	534,485	1,073,790	602,594	-1,925,670
Total assets	US$ in thousands	2,820,840	2,756,220	2,572,580	1,746,740	1,453,420
Operating ROA		18.15%	19.39%	41.74%	34.50%	-132.49%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $511,988K ÷ $2,820,840K
= 18.15%

Based on the provided operating return on assets (Operating ROA) data for Magnolia Oil & Gas Corp for the years 2020 to 2024, the company's performance fluctuated significantly over this period. In December 2020, the company had a negative Operating ROA of -132.49%, indicating that the company's operating income generated from its assets was insufficient to cover the asset base.

However, from December 2021 onwards, the company displayed a positive trend in its Operating ROA, starting at 34.50% in December 2021 and steadily increasing to 41.74% in December 2022. This improvement suggests that the company became more efficient in generating operating income from its assets during these years.

In December 2023, there was a slight decrease in the Operating ROA to 19.39%, indicating a slowdown in the efficiency of the company in utilizing its assets to generate operating returns. This trend continued in December 2024, where the Operating ROA further decreased to 18.15%.

Overall, while there was an initial negative performance in 2020, Magnolia Oil & Gas Corp was able to turn around its performance and achieve positive Operating ROA figures in the subsequent years. However, the recent decline in Operating ROA signals a potential challenge for the company in maintaining or improving its asset efficiency going forward.