Magnolia Oil & Gas Corp (MGY)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	392,839	390,383	388,087	391,115	389,835
Total assets	US$ in thousands	2,756,220	2,572,580	1,746,740	1,453,420	3,466,410
Debt-to-assets ratio		0.14	0.15	0.22	0.27	0.11

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $392,839K ÷ $2,756,220K
= 0.14

The debt-to-assets ratio for Magnolia Oil & Gas Corp has shown fluctuations over the past five years. The ratio decreased from 0.27 in 2020 to 0.11 in 2019, indicating a substantial decrease in the proportion of debt relative to total assets during that period. However, the ratio increased in subsequent years, reaching 0.22 in 2021 and 0.15 in 2022 before dropping slightly to 0.14 in 2023.

A lower debt-to-assets ratio suggests that a company relies less on debt financing and may have a stronger financial position. Conversely, a higher ratio may indicate higher financial risk due to increased debt levels relative to total assets. In the case of Magnolia Oil & Gas Corp, the recent decrease in the ratio from 2022 to 2023 could be a positive sign of improved financial health and lower financial risk. However, further analysis of the company's overall financial performance and debt management practices would be necessary to understand the full implications of these changes.