Magnolia Oil & Gas Corp (MGY)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	64,956	95,364	91,002	154,373
Revenue (ttm)	US$ in thousands	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	942,155	961,486	894,850	851,879
Pretax margin		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%	6.89%	9.92%	10.17%	18.12%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $495,510K ÷ $1,226,979K
= 40.38%

The pretax margin of Magnolia Oil & Gas Corp has displayed a fluctuating trend over the past few quarters. The company experienced a significant improvement in its pretax margin from March 2021 to March 2023, where the margin increased steadily from 13.84% to 51.22%. This indicates increasing operational efficiency and profitability before accounting for taxes.

However, in the last quarter of 2023, there was a slight decrease in the pretax margin to 40.38%. It is essential to monitor this trend closely to understand the potential reasons behind this decline and assess the company's ability to maintain or improve its pretax margin in the future.

Overall, a pretax margin above 40% in most recent quarters reflects a strong performance in generating profits relative to revenues before tax expenses. Monitoring factors influencing profitability and efficiency will be crucial for maintaining a healthy pretax margin for Magnolia Oil & Gas Corp.