Magnolia Oil & Gas Corp (MGY)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	534,487	594,306	757,923	964,849	1,073,786	1,077,893	937,636	738,568	602,594	443,245	293,693	138,567	-1,925,669	-1,945,649	-1,939,921	-1,870,354	118,203	143,849	130,853	188,553
Long-term debt	US$ in thousands	392,839	392,209	391,590	390,982	390,383	389,794	389,216	388,647	388,087	387,537	386,996	391,448	391,115	390,787	390,464	390,147	389,835	389,528	389,225	388,928
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
Return on total capital		25.64%	28.90%	37.41%	48.48%	54.61%	64.90%	63.04%	57.42%	50.02%	40.96%	29.06%	13.84%	-205.02%	-210.71%	-211.44%	-200.40%	5.46%	6.66%	6.15%	9.09%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $534,487K ÷ ($392,839K + $1,691,650K)
= 25.64%

The return on total capital for Magnolia Oil & Gas Corp has fluctuated significantly over the periods analyzed. The return on total capital ranged from a low of -211.44% to a high of 64.90%. The return on total capital was negative in some periods, indicating that the company's capital utilization did not generate positive returns during those times. Over the recent quarters, the return on total capital has generally been improving, with the latest figure standing at 25.64%. This suggests that the company is efficiently utilizing its total capital to generate returns for its stakeholders. However, it is essential to closely monitor future trends to ensure sustained positive performance in terms of return on total capital.