Magnolia Oil & Gas Corp (MGY)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	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	1,776,020	1,769,750	1,739,560	1,685,190
ROE		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%	2.83%	4.24%	4.06%	8.22%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $388,302K ÷ $1,691,650K
= 22.95%

ROE is a crucial financial ratio for evaluating the profitability and efficiency of a company in generating returns for its shareholders. Magnolia Oil & Gas Corp's ROE fluctuated significantly over the periods provided. The trend shows a general upward trajectory from negative values in early 2020 to a peak of 63.91% in Sep 2022, before tapering down.

The company exhibited a strong performance in the period from Sep 2022 to Mar 2023, with ROE ranging from 40.69% to 56.71%. This indicates that Magnolia Oil & Gas Corp efficiently utilized its equity to generate profits during this period. However, the ROE dropped below 30% in the subsequent periods, indicating a decline in profitability and efficiency in generating returns for shareholders.

Overall, the ROE trend highlights volatility in Magnolia Oil & Gas Corp's profitability and efficiency in utilizing shareholder equity. It is essential for the company to focus on sustaining strong ROE levels to demonstrate continued value creation for its shareholders.