Magnolia Oil & Gas Corp (MGY)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,820,840 | 2,756,220 | 2,572,580 | 1,746,740 | 1,453,420 |
| Total stockholders’ equity | US$ in thousands | 1,913,560 | 1,691,650 | 1,576,030 | 816,733 | 548,136 |
| Financial leverage ratio | 1.47 | 1.63 | 1.63 | 2.14 | 2.65 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,820,840K ÷ $1,913,560K
= 1.47
The financial leverage ratio of Magnolia Oil & Gas Corp has exhibited a decreasing trend over the years, indicating a reduction in the company's reliance on debt to finance its operations. As of December 31, 2020, the ratio stood at 2.65, reflecting a relatively high level of leverage. However, by December 31, 2024, the ratio had decreased to 1.47, signaling a lower dependence on debt financing for the company. This trend suggests that Magnolia Oil & Gas Corp has been gradually strengthening its financial position and reducing its debt burden over the years. Lower financial leverage ratios are generally seen as positive indicators of financial health and stability.
Peer comparison
Dec 31, 2024