Magnolia Oil & Gas Corp (MGY)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 1,913,560 | 1,691,650 | 1,576,030 | 816,733 | 548,136 |
| ROE | 19.13% | 22.95% | 56.71% | 51.09% | -220.45% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $366,027K ÷ $1,913,560K
= 19.13%
The return on equity (ROE) of Magnolia Oil & Gas Corp has exhibited significant volatility over the years. Starting at a negative value of -220.45% in December 31, 2020, the company experienced a sharp improvement in profitability, reaching 51.09% by December 31, 2021. This positive trend continued into the following years, with ROE values of 56.71% in 2022 and 22.95% in 2023. However, there was a slight decline in ROE to 19.13% by December 31, 2024.
The increase in ROE from negative figures to positive values signals an enhancement in the company's ability to generate profit from shareholders' equity. The fluctuations in ROE could indicate changes in the company's financial structure, operational efficiency, or profitability. It is essential for investors and stakeholders to further investigate the factors driving these variations to assess the sustainability and growth potential of Magnolia Oil & Gas Corp.
Peer comparison
Dec 31, 2024