Magnolia Oil & Gas Corp (MGY)
Debt-to-equity ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
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 |
Debt-to-equity ratio | 0.21 | 0.23 | 0.25 | 0.48 | 0.71 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $392,513K ÷ $1,913,560K
= 0.21
The debt-to-equity ratio of Magnolia Oil & Gas Corp has been showing a decreasing trend over the years, indicating a positive financial health in terms of leverage. As of December 31, 2020, the ratio was 0.71, and it has consistently decreased to 0.48 as of December 31, 2021, further declining to 0.25 by December 31, 2022. Subsequently, the ratio continued to decrease to 0.23 by December 31, 2023, and further dropped to 0.21 by December 31, 2024.
This declining trend suggests that the company has been reducing its reliance on debt and increasing its equity base, which can be seen as a positive signal by investors and creditors. Lower debt-to-equity ratios typically indicate less financial risk and a stronger ability to meet financial obligations using shareholder equity rather than debt. It also implies improved financial stability and flexibility for the company in the long term.
Peer comparison
Dec 31, 2024