Magnolia Oil & Gas Corp (MGY)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 92.75% | 92.88% | 92.99% | 93.08% | 93.39% | 93.74% | 94.46% | 95.17% | 95.53% | 95.84% | 95.49% | 93.41% | 91.70% | 88.07% | 84.84% | 82.77% | -268.73% | -221.03% | -167.77% | -120.61% |
| Operating profit margin | 38.91% | 40.10% | 42.11% | 42.98% | 43.56% | 47.42% | 53.35% | 59.37% | 63.37% | 64.25% | 63.37% | 59.22% | 55.88% | 49.13% | 39.78% | 24.35% | -355.75% | -313.31% | -260.49% | -206.70% |
| 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% |
| Net profit margin | 27.82% | 28.88% | 29.44% | 30.46% | 31.65% | 41.61% | 46.81% | 50.71% | 52.75% | 48.42% | 46.38% | 41.70% | 38.70% | 32.67% | 25.00% | 14.39% | -223.24% | -197.75% | -164.71% | -131.50% |
The profitability ratios of Magnolia Oil & Gas Corp have shown significant improvements over the past few years. The gross profit margin, which indicates the percentage of revenue retained after direct costs, has rebounded from negative levels in previous years to reach around 92% by the end of 2024.
Similarly, the operating profit margin, reflecting the company's ability to generate profit from its core operations, has shown a positive trend, increasing from single digits to about 39% by mid-2024.
The pretax margin, representing the company's profitability before accounting for taxes, has also demonstrated steady growth, reaching approximately 36% by the end of 2024.
Moreover, the net profit margin, showing the percentage of revenue that translates into net income, has shown consistent improvement, increasing to around 28% by the end of 2024.
Overall, the increasing trend in all profitability ratios indicates that Magnolia Oil & Gas Corp has been able to effectively manage its costs and improve its operational efficiency, resulting in healthier profits and financial performance over the analyzed period.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 18.15% | 18.71% | 19.18% | 18.95% | 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% |
| Return on assets (ROA) | 12.98% | 13.48% | 13.41% | 13.43% | 14.09% | 19.66% | 25.91% | 31.99% | 34.74% | 35.31% | 32.88% | 28.98% | 23.89% | 18.59% | 12.32% | 5.62% | -83.14% | -85.62% | -86.80% | -79.81% |
| Return on total capital | 22.20% | 22.84% | 24.64% | 25.40% | 25.64% | 28.90% | 37.41% | 48.48% | 54.61% | 64.90% | 63.04% | 57.42% | 50.02% | 40.96% | 29.06% | 13.84% | -205.02% | -210.71% | -211.44% | -200.40% |
| Return on equity (ROE) | 19.13% | 19.86% | 20.96% | 22.16% | 22.95% | 31.34% | 40.69% | 51.53% | 56.71% | 63.91% | 62.48% | 57.94% | 51.09% | 42.44% | 29.60% | 13.42% | -220.45% | -230.57% | -232.75% | -219.06% |
Based on the provided data, we can observe the following trends in profitability ratios for Magnolia Oil & Gas Corp:
1. Operating return on assets (Operating ROA): The company's operating ROA has shown a significant improvement over time, starting from negative values in 2020 and gradually increasing to reach a peak of 46.85% in September 2022. However, there was a slight decline in the last quarter of 2024 to 18.15%.
2. Return on assets (ROA): Similarly, the ROA of Magnolia Oil & Gas Corp has followed a positive trajectory, with the ratio improving from negative values to a peak of 35.31% in September 2022. The ratio declined slightly in the last quarter of 2024 to 12.98%.
3. Return on total capital: The return on total capital has also shown an upward trend, with a peak of 64.90% recorded in September 2022. However, there was a gradual decline in this ratio in the subsequent quarters, reaching 22.20% by the end of December 2024.
4. Return on equity (ROE): The ROE of the company has demonstrated a similar pattern of improvement over the years, reaching its highest value of 63.91% in September 2022. However, there was a subsequent decrease in the last quarter of 2024, with the ratio standing at 19.13%.
Overall, the profitability ratios of Magnolia Oil & Gas Corp have shown a positive trend, indicating an improvement in the company's ability to generate profits from its assets and equity capital over the years. However, there was a slight decline in some ratios towards the end of the period analyzed, which may require further investigation to understand the underlying causes.