Magnolia Oil & Gas Corp (MGY)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,691,650	1,576,030	816,733	548,136	1,776,020
Debt-to-capital ratio		0.19	0.20	0.32	0.42	0.18

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $392,839K ÷ ($392,839K + $1,691,650K)
= 0.19

The debt-to-capital ratio of Magnolia Oil & Gas Corp has varied over the years as follows:

- In 2023, the ratio stood at 0.19, indicating that 19% of the company's capital structure was financed by debt.
- In 2022, the ratio was slightly higher at 0.20, suggesting a similar debt financing structure compared to the previous year.
- In 2021, there was a notable increase in the ratio to 0.32, signifying that 32% of the company's capital was funded by debt.
- The ratio spiked further in 2020 to 0.42, showing a significant reliance on debt for capital needs.
- However, in 2019, the ratio dropped to 0.18, indicating a lower debt component in the company's capital mix.

Overall, the trend in Magnolia Oil & Gas Corp's debt-to-capital ratio indicates fluctuations in the company's leverage position over the years, with a significant increase in debt financing in 2020 followed by a decrease in subsequent years. This suggests a varying level of risk associated with the company's capital structure and may reflect changes in the company's financial strategy or economic conditions impacting its debt levels. Investors and analysts may want to further investigate the reasons behind these fluctuations to assess the company's financial stability and risk profile.