Magnolia Oil & Gas Corp (MGY)

Debt-to-equity ratio

		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
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
Debt-to-equity ratio		0.23	0.24	0.24	0.24	0.25	0.31	0.35	0.43	0.48	0.56	0.62	0.64	0.71	0.73	0.74	0.72	0.22	0.22	0.22	0.23

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 exhibited a gradual increase over the past few years, indicating a higher reliance on debt financing compared to equity. From December 2019 to December 2023, the ratio ranged from 0.22 to 0.74, with a general upward trend. This suggests that the company's debt levels have been increasing relative to its equity levels.

The ratio peaked at 0.74 in March 2020 and has since fluctuated within a range, with some fluctuations seen in 2022. While a higher debt-to-equity ratio can indicate increased financial leverage, it also raises the company's financial risk, as higher debt levels may lead to higher interest payments and potential solvency issues in the long run.

Overall, investors and creditors may view the trend of increasing debt-to-equity ratio as a signal of potential financial risk and may necessitate a closer examination of Magnolia Oil & Gas Corp's ability to manage its debt and maintain a healthy balance sheet in the future.