Magnolia Oil & Gas Corp (MGY)

Return on assets (ROA)

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
Net income (ttm) US$ in thousands 366,027 378,874 381,120 377,053 388,302 521,595 665,042 824,133 893,837 812,328 686,215 520,077 417,282 294,798 184,581 81,864 -1,208,390 -1,228,018 -1,226,618 -1,189,840
Total assets US$ in thousands 2,820,840 2,810,960 2,842,860 2,807,940 2,756,220 2,652,490 2,566,720 2,576,050 2,572,580 2,300,640 2,086,790 1,794,610 1,746,740 1,585,780 1,498,340 1,455,850 1,453,420 1,434,280 1,413,080 1,490,830
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%

December 31, 2024 calculation

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

The return on assets (ROA) of Magnolia Oil & Gas Corp has shown a significant improvement over the past few quarters. The ROA was negative in the first half of 2020, indicating inefficiency in generating profits relative to its total assets. However, starting from the first quarter of 2021, the company managed to turn around its performance, with a positive ROA of 5.62%, which continued to increase steadily throughout 2021 and into 2022.

By December 2022, the ROA reached a peak of 34.74%, demonstrating the company's ability to generate income efficiently from its assets. Subsequently, the ROA experienced a slight decline in the following quarters but remained above 12%, indicating a sustained level of profitability relative to its asset base.

Overall, the trend of increasing ROA from negative values to double-digit positive percentages reflects an improvement in Magnolia Oil & Gas Corp's profitability and efficiency in utilizing its assets to generate earnings.