Magnolia Oil & Gas Corp (MGY)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	366,027	388,301	893,837	417,282	-1,208,390
Total assets	US$ in thousands	2,820,840	2,756,220	2,572,580	1,746,740	1,453,420
ROA		12.98%	14.09%	34.74%	23.89%	-83.14%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $366,027K ÷ $2,820,840K
= 12.98%

The return on assets (ROA) for Magnolia Oil & Gas Corp has demonstrated significant fluctuations over the years based on the provided data.

As of December 31, 2020, the ROA stood at a negative 83.14%, indicating that the company experienced a substantial loss relative to its asset base. However, in the following year, by December 31, 2021, the ROA rebounded to a positive 23.89%, showing a marked improvement in the company's ability to generate profits from its assets.

By December 31, 2022, the ROA further increased to 34.74%, reflecting an even stronger performance in utilizing its assets efficiently to generate returns. However, there was a slight decline by December 31, 2023, with the ROA decreasing to 14.09%, indicating a possible decrease in profitability relative to the asset base during that period.

Lastly, as of December 31, 2024, the ROA declined further to 12.98%, suggesting a continued moderation in the company's ability to generate returns from its assets.

Overall, the data highlights the varying performance of Magnolia Oil & Gas Corp in terms of utilizing its assets effectively to generate returns, showcasing both fluctuations and improvements over the years.