Magnolia Oil & Gas Corp (MGY)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	388,301	893,837	417,282	-1,208,390	50,196
Total stockholders’ equity	US$ in thousands	1,691,650	1,576,030	816,733	548,136	1,776,020
ROE		22.95%	56.71%	51.09%	-220.45%	2.83%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $388,301K ÷ $1,691,650K
= 22.95%

The return on equity (ROE) of Magnolia Oil & Gas Corp has shown significant fluctuations over the past five years. In 2023, the ROE decreased to 22.95% from 56.71% in 2022, indicating a decline in the company's profitability in generating returns on shareholders' equity. However, compared to the negative ROE of -220.45% in 2020, the current ROE in 2023 represents a marked improvement.

The ROE of 22.95% in 2023 is still lower than the levels seen in 2021 and 2022, suggesting potential challenges in efficiency and profitability management within the company. It is essential for Magnolia Oil & Gas Corp to assess the factors contributing to the decrease in ROE and implement strategies to enhance profitability and efficiently utilize shareholders' equity.

Overall, the fluctuating trend in ROE for Magnolia Oil & Gas Corp indicates the need for continuous monitoring and strategic decision-making to improve financial performance and create sustainable returns for the company and its shareholders.