Magnolia Oil & Gas Corp (MGY)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 2,820,840 2,810,960 2,842,860 2,807,940 2,756,220 2,652,490 2,566,720 2,576,050 2,572,580 2,300,640 2,086,790 1,794,610 1,746,740 1,585,780 1,498,340 1,455,850 1,453,420 1,434,280 1,413,080 1,490,830
Total stockholders’ equity US$ in thousands 1,913,560 1,908,060 1,818,050 1,701,240 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
Financial leverage ratio 1.47 1.47 1.56 1.65 1.63 1.59 1.57 1.61 1.63 1.81 1.90 2.00 2.14 2.28 2.40 2.39 2.65 2.69 2.68 2.74

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 shown a declining trend over the past few years. As of December 31, 2024, the financial leverage ratio stands at 1.47, indicating that the company's financial leverage has decreased to 1.47 times. This suggests that the company's reliance on debt to finance its operations has been reducing over time.

The decreasing trend in the financial leverage ratio is a positive sign as it signifies that the company is becoming less dependent on borrowed funds to support its activities. A lower financial leverage ratio indicates a stronger financial position and lower financial risk for the company. It also suggests that the company may have better debt repayment capacity and improved ability to weather economic downturns.

Overall, the declining financial leverage ratio of Magnolia Oil & Gas Corp reflects a prudent financial management strategy and a strengthening balance sheet, which could enhance its financial stability and resilience in the long term.