Magnolia Oil & Gas has a Cash Ratio of 1.27. It generally indicates that the company is able to cover all short-term debt and still have cash remaining.
The historical rank and industry rank for Magnolia Oil & Gas's Cash Ratio or its related term are showing as below:
MGY'
s Cash Ratio Range Over the Past 10 Years
Min: 0.69 Med: 1.38 Max: 1.98
Current: 1.27
During the past 8 years, Magnolia Oil & Gas's highest Cash Ratio was 1.98. The lowest was 0.69. And the median was 1.38.
MGY's Cash Ratio is ranked better than 77.39% of 1026
companies
in the Oil & Gas industry
Industry Median: 0.405
vs MGY: 1.27
Magnolia Oil & Gas Cash Ratio Historical Data
The historical data trend for Magnolia Oil & Gas's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Competitive Comparison of Magnolia Oil & Gas's Cash Ratio
For the Oil & Gas E&P subindustry, Magnolia Oil & Gas's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Magnolia Oil & Gas's Cash Ratio Distribution in the Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Magnolia Oil & Gas's Cash Ratio distribution charts can be found below:
* The bar in red indicates where Magnolia Oil & Gas's Cash Ratio falls into.
Magnolia Oil & Gas Cash Ratio Calculation
The Cash Ratio measures a company's ability to meet its short-term obligations with its cash and near-cash resources.
Magnolia Oil & Gas's Cash Ratio for the fiscal year that ended in Dec. 2023 is calculated as:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Magnolia Oil & Gas (NYSE:MGY) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
Magnolia Oil & Gas Cash Ratio Related Terms
Thank you for viewing the detailed overview of Magnolia Oil & Gas's Cash Ratio provided by GuruFocus.com. Please click on the following links to see related term pages.
Magnolia Oil & Gas (Magnolia Oil & Gas) Business Description
Magnolia Oil & Gas Corp is an independent oil and natural gas company engaged in the acquisition, development, exploration, and production of oil, natural gas, and natural gas liquid (NGL) reserves. The Company's oil and natural gas properties are located in Karnes County and the Giddings area in South Texas, where the Company targets the Eagle Ford Shale and Austin Chalk formations. Its objective is to generate stock market value over the long term through consistent organic production growth, high full-cycle operating margins, and an efficient capital program with short economic paybacks. The company's operating segment is acquisition, development, exploration, and production of oil and natural gas properties located in the United States.
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