Magnolia Petroleum (LSE:MAGP) Effective Interest Rate on Debt %: 5.25% (As of Jun. 2017)

Author: Vera Yuan Vera Yuan
Vera Yuan
Vera Yuan
Director of Data and Quant Analytics at GuruFocus
Focused on building reliable datasets, financial models, and research tools for value-minded investors. Committed to turning complex data into practical guidance for value-investing and long-term wealth.
Reviewed by: Charlie Tian Charlie Tian
Charlie Tian
Charlie Tian
Founder & CEO of GuruFocus
Dr. Charlie Tian is the founder and CEO of GuruFocus.com, a leading global investment research platform established in 2004. With a Ph.D. in physics, Dr. Tian transitioned from science to finance, applying a data-driven, disciplined approach to value investing.

What is Magnolia Petroleum Effective Interest Rate on Debt %?

Magnolia Petroleum LSE:MAGP +50.00% Effective Interest Rate on Debt % is 5.25% as of Jun. 2017. The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Magnolia Petroleum's annualized positive value of Interest Expense for the quarter that ended in Jun. 2017 was £0.11 Mil. Magnolia Petroleum's average total debt for the quarter that ended in Jun. 2017 was £2.06 Mil. Therefore, Magnolia Petroleum's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2017 was 5.25%.


Magnolia Petroleum  (LSE:MAGP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Magnolia Petroleum Effective Interest Rate on Debt % Related Terms


Magnolia Petroleum Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Magnolia Petroleum's Effective Interest Rate on Debt % 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.

Magnolia Petroleum Effective Interest Rate on Debt % Chart

Magnolia Petroleum Annual Data
Trend Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14 Dec15 Dec16
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only 0.00 2.37 7.05 4.15 5.64

Magnolia Petroleum Semi-Annual Data
Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17
Effective Interest Rate on Debt % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.73 4.08 4.44 6.00 5.25

LSE:MAGP vs VNRRQ, GBEYF, STSC: Effective Interest Rate on Debt % Comparison

For the Oil & Gas E&P subindustry, Magnolia Petroleum's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on Debt % 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 Petroleum Effective Interest Rate on Debt % vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Magnolia Petroleum's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Magnolia Petroleum's Effective Interest Rate on Debt % falls into.



Magnolia Petroleum Effective Interest Rate on Debt % Calculation

Magnolia Petroleum's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Dec. 2016 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Dec. 2015 )+Total Debt  (A: Dec. 2016 ))/ count )
=-1  *  -0.119/( (2.108+2.113)/ 2 )
=-1  *  -0.119/2.1105
=5.64 %

where

Magnolia Petroleum's annualized Effective Interest Rate on Debt % for the quarter that ended in Jun. 2017 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2016 )+Total Debt  (Q: Jun. 2017 ))/ count )
=-1  *  -0.108/( (2.113+2.001)/ 2 )
=-1  *  -0.108/2.057
=5.25 %

where

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is two times the semi-annual (Jun. 2017) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 5.25% mean?
Magnolia Petroleum (LSE:MAGP) has a Effective Interest Rate on Debt % of 5.25% as of Jun. 2017. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Magnolia Petroleum and its competitors.
Is Magnolia Petroleum's Effective Interest Rate on Debt % too high?
Magnolia Petroleum's current Effective Interest Rate on Debt % is 5.25%.
How does Magnolia Petroleum's Effective Interest Rate on Debt % compare to VNRRQ and GBEYF?
Magnolia Petroleum's Effective Interest Rate on Debt % of 5.25% can be compared against companies in the Oil & Gas industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for an Oil & Gas company?
A good Effective Interest Rate on Debt % depends on the Oil & Gas industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Magnolia Petroleum and its competitors. Magnolia Petroleum's current Effective Interest Rate on Debt % is 5.25%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Magnolia Petroleum stock overvalued right now?
Magnolia Petroleum (LSE:MAGP) has a current Effective Interest Rate on Debt % of 5.25%. The current Effective Interest Rate on Debt % is 5.25%. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Magnolia Petroleum (LSE:MAGP), the current Effective Interest Rate on Debt % is 5.25% as of Jun. 2017. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Magnolia Petroleum Business Description

Industry EnergyOil & Gas
Address 19-21 Crawford Street, Suite 321, London, GBR, W1H 1PJ
Magnolia Petroleum PLC is an oil and gas production company. The company focuses on the acquisition, exploitation, and development of oil and gas properties located onshore in the United States. It has a diverse portfolio of revenue-generating assets including leases on the highly productive Bakken/Three Forks Sanish Formation in North Dakota and the proven Mississippi Lime and Woodford/Hunton oil formations in Oklahoma. It operates in two geographical areas, the United Kingdom and the United States of America.