Magnolia Oil & Gas Corp (MGY)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	2,756,220	2,652,490	2,566,720	2,576,050	2,572,580	2,300,640	2,086,790	1,794,610	1,746,740	1,585,780	1,498,340	1,455,850	1,453,420	1,434,280	1,413,080	1,490,830	3,466,410	3,533,130	3,531,130	3,437,970
Operating ROA		19.39%	22.41%	29.53%	37.45%	41.74%	46.85%	44.93%	41.15%	34.50%	27.95%	19.60%	9.52%	-132.49%	-135.65%	-137.28%	-125.46%	3.68%	5.06%	5.41%	7.24%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $534,487K ÷ $2,756,220K
= 19.39%

The operating return on assets (ROA) for Magnolia Oil & Gas Corp has shown significant fluctuations over the periods analyzed. The operating ROA has generally been positive, ranging from 3.68% to as high as 46.85%. However, there were instances of negative operating ROA, particularly in the early quarters of 2021 and in the last quarter of 2020.

In general, a higher operating ROA indicates better operational efficiency and profitability as it measures how well the company generates profits from its assets before interest and taxes. The trend of increasing operating ROA from negative values in 2021 to positive values in 2023 reflects a potential improvement in the company's operational performance and asset utilization.

It is important for investors and stakeholders to closely monitor Magnolia Oil & Gas Corp's operating ROA trends over time to assess the company's ability to generate profits from its assets effectively and sustainably.