Magnolia Oil & Gas Corp (MGY)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	50,196	74,998	70,627	138,570
Total assets	US$ in thousands	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	3,466,410	3,533,130	3,531,130	3,437,970
ROA		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%	1.45%	2.12%	2.00%	4.03%

December 31, 2023 calculation

ROA = Net income (ttm) ÷ Total assets
= $388,302K ÷ $2,756,220K
= 14.09%

The return on assets (ROA) of Magnolia Oil & Gas Corp has shown a fluctuating trend over the past few quarters. The ROA increased from 14.09% in December 2023 to a peak of 35.31% in September 2022, before gradually declining to -86.80% in June 2020. This negative ROA in mid-2020 and early 2021 indicates that the company's assets were not generating sufficient profits during that period.

However, the ROA improved significantly thereafter, reaching 31.99% in March 2023 and 25.91% in June 2023. This improvement suggests that the company was able to generate higher profits relative to its assets during these quarters.

Overall, Magnolia Oil & Gas Corp's ROA has displayed both positive and negative trends, with periods of substantial profitability followed by challenges in asset utilization. It is important for the company to sustain or improve its ROA to demonstrate efficient use of assets in generating profits.