Magnolia Oil & Gas Corp (MGY)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	495,509	900,475	426,133	-1,287,730	64,956
Revenue	US$ in thousands	1,226,980	1,694,490	1,078,350	541,303	942,156
Pretax margin		40.38%	53.14%	39.52%	-237.89%	6.89%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $495,509K ÷ $1,226,980K
= 40.38%

The pretax margin of Magnolia Oil & Gas Corp has exhibited fluctuations over the past five years. In 2023, the pretax margin stood at 40.38%, representing a decrease from the previous year's figure of 53.14%. Despite the decline, the company maintained a relatively healthy level of profitability before taxes.

Comparing to 2021 when the pretax margin was 39.52%, the current year's performance is slightly improved. However, it is worth noting that in 2020, the company reported a negative pretax margin of -237.89%, indicating a significant loss before taxes. This abnormal result could be a result of exceptional circumstances or one-time charges affecting the company's profitability in that year.

Overall, the pretax margin trend of Magnolia Oil & Gas Corp suggests variability in its profitability performance over the past five years, which may be influenced by various factors such as operational efficiency, cost management, revenue changes, and non-recurring events.