Magnolia Oil & Gas Corp (MGY)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 511,988 | 534,485 | 1,073,790 | 602,594 | -1,925,670 |
| Long-term debt | US$ in thousands | 392,513 | 392,839 | 390,383 | 388,087 | 391,115 |
| Total stockholders’ equity | US$ in thousands | 1,913,560 | 1,691,650 | 1,576,030 | 816,733 | 548,136 |
| Return on total capital | 22.20% | 25.64% | 54.61% | 50.02% | -205.02% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $511,988K ÷ ($392,513K + $1,913,560K)
= 22.20%
Based on the data provided, Magnolia Oil & Gas Corp's return on total capital has shown a significant improvement over the years. Starting at a negative -205.02% in December 31, 2020, the company turned around its performance to achieve a positive return of 50.02% by December 31, 2021. This positive trend continued as the return on total capital further increased to 54.61% by December 31, 2022.
However, there was a slight decrease in the return on total capital to 25.64% by December 31, 2023, followed by another decrease to 22.20% by December 31, 2024. Despite the slight decreases in the latter years, the company has demonstrated an overall improvement in its utilization of capital to generate returns. This indicates that Magnolia Oil & Gas Corp has been efficient in generating profits relative to the total capital employed in its operations.
Peer comparison
Dec 31, 2024