Northern Oil & Gas Inc (NOG)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 12.61 | 38.65 | 26.34 | 55.04 |
| Receivables turnover | 5.80 | 5.78 | 2.57 | 7.78 | 4.35 |
| Payables turnover | 4.56 | 4.34 | 5.22 | 38.08 | 5.17 |
| Working capital turnover | 17.52 | — | — | — | — |
Inventory turnover is a measure of how efficiently a company manages its inventory. Unfortunately, the data provided does not include information on inventory turnover for Northern Oil and Gas Inc. for any of the years.
Receivables turnover indicates how many times a company collects its average accounts receivable balance during a specific period. Northern Oil and Gas Inc.'s receivables turnover has been relatively stable over the years, with a significant increase from 2019 to 2020, followed by a slight decline in 2021 and a slight increase in 2022. The higher the receivables turnover ratio, the quicker the company is collecting payments from its customers.
Payables turnover, which measures how quickly a company pays its suppliers, is reported as 0.00 for all years in the table. This could be due to the nature of the company's industry or data availability issues.
Working capital turnover measures how efficiently a company is using its working capital to generate revenue. Northern Oil and Gas Inc. had a working capital turnover of 17.52 in 2023, indicating that the company generated $17.52 for every dollar of working capital invested. However, working capital turnover data for other years is not provided, making it difficult to assess the trend over time.
Overall, based on the available data, Northern Oil and Gas Inc. demonstrates relatively efficient management of its receivables, but further information is needed to fully evaluate its management of inventory, payables, and working capital.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 28.95 | 9.44 | 13.86 | 6.63 |
| Days of sales outstanding (DSO) | days | 62.98 | 63.14 | 142.18 | 46.94 | 83.82 |
| Number of days of payables | days | 80.05 | 84.09 | 69.95 | 9.59 | 70.57 |
Days of inventory on hand (DOH) information for Northern Oil and Gas Inc. is missing from the provided table, making it difficult to assess the efficiency of inventory management.
Looking at Days of Sales Outstanding (DSO), which measures how long it takes for the company to collect revenue after making a sale, we see a fluctuating trend over the past five years. In 2023, Northern Oil and Gas Inc. had a DSO of 62.98 days, slightly lower than 2022 but significantly better than 2021. This indicates an improvement in collecting receivables efficiently.
Unfortunately, data on the Number of Days of Payables for the company is also missing, so we cannot evaluate its ability to manage its payables effectively.
In conclusion, while Northern Oil and Gas Inc. appears to have improved its efficiency in collecting revenue as indicated by the decreasing trend in DSO, further information on inventory management and payables is necessary for a comprehensive analysis of the company's activity ratios.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.55 | 0.63 | 0.40 | 0.75 | 0.27 |
| Total asset turnover | 0.48 | 0.55 | 0.33 | 0.63 | 0.25 |
The fixed asset turnover ratio for Northern Oil and Gas Inc. has shown a declining trend over the five-year period, from 0.27 in 2019 to 0.55 in 2023. This indicates that the company generated $0.55 in revenue for every dollar invested in fixed assets in 2023, which is an improvement compared to previous years. A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.
In contrast, the total asset turnover ratio also demonstrates a similar trend of improvement over the same period, increasing from 0.25 in 2019 to 0.48 in 2023. This indicates that the company generated $0.48 in revenue for every dollar of total assets in 2023, reflecting enhanced efficiency in asset utilization. The increase in total asset turnover signifies that the company is generating more sales relative to its total asset base.
Overall, the improvement in both fixed asset turnover and total asset turnover ratios reflects favorable operational efficiency and asset utilization by Northern Oil and Gas Inc. over the five-year period. Investors and stakeholders may interpret these ratios as positive indicators of the company's ability to generate revenue efficiently from its assets.