Magnolia Oil & Gas Corp (MGY)

Solvency ratios

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
Debt-to-assets ratio 0.14 0.14 0.14 0.14 0.14 0.15 0.15 0.15 0.15 0.17 0.19 0.22 0.22 0.24 0.26 0.27 0.27 0.27 0.28 0.26
Debt-to-capital ratio 0.17 0.17 0.18 0.19 0.19 0.19 0.19 0.20 0.20 0.23 0.26 0.30 0.32 0.36 0.38 0.39 0.42 0.42 0.43 0.42
Debt-to-equity ratio 0.21 0.21 0.22 0.23 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
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

The solvency ratios of Magnolia Oil & Gas Corp show a positive trend over the period analyzed.

1. Debt-to-assets ratio steadily decreased from 0.26 in March 2020 to 0.14 in December 2024, indicating that the company became more efficient in managing its assets compared to its debt obligations.

2. Debt-to-capital ratio also saw a decline from 0.42 in March 2020 to 0.17 in December 2024, reflecting a decreasing reliance on debt to finance its operations and investments.

3. Debt-to-equity ratio exhibited a similar decreasing trend, dropping from 0.72 in March 2020 to 0.21 in December 2024, showcasing a strengthening in the company's financial structure and a decreasing level of financial risk.

4. The financial leverage ratio reduced consistently from 2.74 in March 2020 to 1.47 in December 2024, indicating that the company has been effectively managing its financial leverage and reducing its reliance on debt to fund its operations.

Overall, the decreasing trend in all solvency ratios reflects a positive trajectory for Magnolia Oil & Gas Corp, as it signifies an improved financial health and a stronger ability to meet its debt obligations with its available assets and capital.

Coverage ratios

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
Interest coverage 114.82 119.87 125.46 123.66 125.58 141.00 181.54 236.25 183.43 181.07 154.96 119.28 140.46 108.99 76.30 38.05 -530.78 -539.41 -540.97 —

The interest coverage ratio of Magnolia Oil & Gas Corp significantly improved over the reported periods, indicating a positive trend in the company's ability to cover its interest obligations with its earnings. From negative figures in mid-2020 and late 2020, the gradual recovery began in early 2021 with a modest interest coverage ratio of 38.05, which then improved consistently in subsequent quarters.

By the end of 2024, the interest coverage ratio reached a peak of 125.46, signifying that the company's operating income was 125.46 times more than its interest expenses for the period. This demonstrates a robust financial position for Magnolia Oil & Gas Corp, providing a clear indication of its ability to comfortably meet its interest payment obligations and potentially reinvest in its operations or pursue growth opportunities.

Overall, the positive trajectory of Magnolia Oil & Gas Corp's interest coverage ratio reflects a sound financial performance and stability, which is essential for sustaining operations and driving future growth.