Magnolia Oil & Gas Corp (MGY)

Pretax 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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	461,841	484,054	490,981	484,992	495,510	538,563	670,157	832,276	900,475	880,084	738,244	546,629	426,133	301,226	187,039	78,748	-1,287,735	-1,305,052	-1,299,784	-1,254,685
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
Pretax margin		35.10%	36.90%	37.93%	39.18%	40.38%	42.97%	47.17%	51.22%	53.14%	52.46%	49.89%	43.83%	39.52%	33.39%	25.34%	13.84%	-237.90%	-210.15%	-174.53%	-138.66%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $461,841K ÷ $1,315,886K
= 35.10%

Magnolia Oil & Gas Corp's pretax margin has shown a significant improvement over the last few quarters. The company experienced negative pretax margins in the first half of 2020, reaching as low as -237.90% in December 2020. However, starting from March 2021, the trend reversed, with the pretax margin turning positive at 13.84%.

The company's pretax margin continued to improve throughout 2021 and 2022, reaching 53.14% by the end of December 2022. Although there was a slight dip in the pretax margin in the first quarter of 2023, Magnolia Oil & Gas Corp managed to maintain relatively high levels, with a pretax margin of 40.38% by the end of December 2023.

As of December 31, 2024, Magnolia Oil & Gas Corp's pretax margin stands at 35.10%, indicating that the company is still able to generate a healthy profit before taxes relative to its revenue. This positive trend signals improved operational efficiency and profitability for the company.