Magnolia Petroleum (LSE:MAGP) Asset Turnover: 0.08 (As of Jun. 2017)

What is Magnolia Petroleum Asset Turnover?

Magnolia Petroleum LSE:MAGP +50.00% Asset Turnover is 0.08 as of Jun. 2017. The stock has 6 warning signs investors should review.

Asset Turnover measures how quickly a company turns over its asset through sales. It is calculated as Revenue divided by Total Assets. Magnolia Petroleum's Revenue for the six months ended in Jun. 2017 was £0.40 Mil. Magnolia Petroleum's Total Assets for the quarter that ended in Jun. 2017 was £4.75 Mil. Therefore, Magnolia Petroleum's Asset Turnover for the quarter that ended in Jun. 2017 was 0.08.

Asset Turnover is linked to ROE % through Du Pont Formula. Magnolia Petroleum's annualized ROE % for the quarter that ended in Jun. 2017 was -263.42%. It is also linked to ROA % through Du Pont Formula. Magnolia Petroleum's annualized ROA % for the quarter that ended in Jun. 2017 was -86.43%.

Magnolia Petroleum (LSE:MAGP) Asset Turnover Explanation

Asset Turnover is linked to ROE % through Du Pont Formula.

Magnolia Petroleum's annulized ROE % for the quarter that ended in Jun. 2017 is

	ROE %^**		(Q: Jun. 2017 )
=	Net Income	/	Total Stockholders Equity
=	-4.108	/	1.5595
=	(Net Income / Revenue)	*	(Revenue / Total Assets)	*	(Total Assets / Total Stockholders Equity)
=	(-4.108 / 0.796)	*	(0.796 / 4.753)	*	(4.753/ 1.5595)
=	Net Margin %	*	Asset Turnover	*	Equity Multiplier
=	-516.08 %	*	0.1675	*	3.0478
=	ROA %	*	Equity Multiplier
=	-86.43 %	*	3.0478
=	-263.42 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2017) net income data. The Revenue data used here is two times the semi-annual (Jun. 2017) revenue data.

* 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.

^** The ROE % used above is for Du Pont Analysis only. It is different from the defined ROE % page on our website, as here it uses Net Income instead of Net Income attributable to Common Stockholders in the calculation.

It is also linked to ROA % through Du Pont Formula:

Magnolia Petroleum's annulized ROA % for the quarter that ended in Jun. 2017 is

	ROA %		(Q: Jun. 2017 )
=	Net Income	/	Total Assets
=	-4.108	/	4.753
=	(Net Income / Revenue)	*	(Revenue / Total Assets)
=	(-4.108 / 0.796)	*	(0.796 / 4.753)
=	Net Margin %	*	Asset Turnover
=	-516.08 %	*	0.1675
=	-86.43 %

Note: The Net Income data used here is two times the semi-annual (Jun. 2017) net income data. The Revenue data used here is two times the semi-annual (Jun. 2017) revenue data.

Be Aware

In the article Joining The Dark Side: Pirates, Spies and Short Sellers, James Montier reported that In their US sample covering the period 1968-2003, Cooper et al find that firms with low asset growth outperformed firms with high asset growth by an astounding 20% p.a. equally weighted. Even when controlling for market, size and style, low asset growth firms outperformed high asset growth firms by 13% p.a. Therefore a company with fast asset growth may underperform.

Therefore, it is a good sign if a company's Asset Turnover is consistent or even increases. If a company's asset grows faster than sales, its Asset Turnover will decline, which can be a warning sign.

Magnolia Petroleum Asset Turnover Related Terms

Magnolia Petroleum Asset Turnover Historical Data

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The historical data trend for Magnolia Petroleum's Asset Turnover can be seen below:

Magnolia Petroleum Asset Turnover Chart

Magnolia Petroleum Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Asset Turnover

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0.09

0.17

0.22

0.14

0.16

Magnolia Petroleum Semi-Annual Data
	Dec11	Jun12	Dec12	Jun13	Dec13	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17
Asset Turnover	Get a 7-Day Free Trial							0.06	0.06	0.07	0.08	0.08

LSE:MAGP vs VNRRQ, GBEYF, STSC: Asset Turnover Comparison

For the Oil & Gas E&P subindustry, Magnolia Petroleum's Asset Turnover, along with its competitors' market caps and Asset Turnover 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 Asset Turnover vs Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Magnolia Petroleum's Asset Turnover distribution charts can be found below:

* The bar in red indicates where Magnolia Petroleum's Asset Turnover falls into.

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Magnolia Petroleum Asset Turnover Calculation

Asset Turnover measures how quickly a company turns over its asset through sales.

Magnolia Petroleum's Asset Turnover for the fiscal year that ended in Dec. 2016 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (A: Dec. 2016 )	/	( (Total Assets (A: Dec. 2015 )	+	Total Assets (A: Dec. 2016 ))	/ count )
=	1.02	/	( (6.822	+	5.651)	/ 2 )
=	1.02	/	6.2365
=	0.16

Magnolia Petroleum's Asset Turnover for the quarter that ended in Jun. 2017 is calculated as

	Asset Turnover
=	Revenue	/	Average Total Assets
=	Revenue (Q: Jun. 2017 )	/	( (Total Assets (Q: Dec. 2016 )	+	Total Assets (Q: Jun. 2017 ))	/ count )
=	0.398	/	( (5.651	+	3.855)	/ 2 )
=	0.398	/	4.753
=	0.08

Companies with low profit margins tend to have high Asset Turnover, while those with high profit margins have low Asset Turnover. Companies in the retail industry tend to have a very high turnover ratio.

Frequently Asked Questions Learn more about Asset Turnover →

What does a Asset Turnover of 0.08 mean?

Magnolia Petroleum (LSE:MAGP) has a Asset Turnover of 0.08 as of Jun. 2017. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Magnolia Petroleum and its competitors.

Is Magnolia Petroleum's Asset Turnover too high?

Magnolia Petroleum's current Asset Turnover is 0.08.

How does Magnolia Petroleum's Asset Turnover compare to VNRRQ and GBEYF?

Magnolia Petroleum's Asset Turnover of 0.08 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 Asset Turnover for an Oil & Gas company?

A good Asset Turnover depends on the Oil & Gas industry context. However, Asset Turnover 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 Asset Turnover mean?

A high Asset Turnover can signal that a stock is expensive relative to its fundamentals. Asset turnover equals current-period sales over average total assets over the past two periods. View historical data on Magnolia Petroleum and its competitors. Magnolia Petroleum's current Asset Turnover is 0.08. 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 Asset Turnover of 0.08. The current Asset Turnover is 0.08. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.

How is Asset Turnover calculated?

Asset Turnover is calculated from a company's financial statements. For Magnolia Petroleum (LSE:MAGP), the current Asset Turnover is 0.08 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 Energy Oil & Gas

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Address 19-21 Crawford Street, Suite 321, London, GBR, W1H 1PJ

Website http://www.magnoliapetroleum.com

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.