Magnolia Oil & Gas Corp (MGY)

Return on equity (ROE)

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 stockholders’ equity US$ in thousands 1,913,560 1,908,060 1,818,050 1,701,240 1,691,650 1,664,150 1,634,470 1,599,340 1,576,030 1,271,010 1,098,250 897,564 816,733 694,612 623,532 609,789 548,136 532,608 527,019 543,166
ROE 19.13% 19.86% 20.96% 22.16% 22.95% 31.34% 40.69% 51.53% 56.71% 63.91% 62.48% 57.94% 51.09% 42.44% 29.60% 13.42% -220.45% -230.57% -232.75% -219.06%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $366,027K ÷ $1,913,560K
= 19.13%

Magnolia Oil & Gas Corp's return on equity (ROE) experienced a significant improvement over the period from March 31, 2020, to December 31, 2024.

The company started with negative ROE figures in 2020, indicating that its net income was insufficient to cover shareholders' equity during that time. However, there was a notable turnaround starting from March 31, 2021, when the ROE turned positive at 13.42%. The positive trend continued, with ROE increasing steadily to 62.48% by June 30, 2022.

During this period, Magnolia Oil & Gas Corp's ROE demonstrated a strong performance, reaching a peak of 63.91% by September 30, 2022. Subsequently, the ROE showed a slight decline but generally remained above 20%, indicating that the company continued to generate healthy returns for its shareholders.

Overall, the analysis of Magnolia Oil & Gas Corp's ROE highlights a positive trajectory and an improvement in the company's profitability and efficiency in generating returns on shareholders' equity.