Magnolia Oil & Gas Corp (MGY)

Debt-to-equity 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-equity ratio		0.23	0.25	0.48	0.71	0.22

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $392,839K ÷ $1,691,650K
= 0.23

The debt-to-equity ratio of Magnolia Oil & Gas Corp has shown a fluctuating trend over the past five years. In 2019, the ratio stood at 0.22, indicating a relatively low level of debt compared to equity. Subsequently, there was a sharp increase in the ratio to 0.71 in 2020, suggesting a significant rise in the company's debt relative to its equity.

However, from 2020 to 2023, there was a notable decrease in the debt-to-equity ratio, reaching 0.23 in 2023. This decline indicates a reduction in the proportion of debt compared to equity, signifying potentially improved financial stability and reduced financial risk for the company.

Overall, the trend in Magnolia Oil & Gas Corp's debt-to-equity ratio highlights fluctuations in the company's capital structure over the years, with a recent trend towards lower leverage and a stronger equity position. This could signify a more conservative approach to financing and a healthier balance sheet composition.