Northern Oil & Gas Inc (NOG)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 2,166,260 | 1,570,540 | 496,899 | 552,210 | 472,402 |
| Property, plant and equipment | US$ in thousands | 3,931,560 | 2,482,930 | 1,253,340 | 735,204 | 1,748,590 |
| Fixed asset turnover | 0.55 | 0.63 | 0.40 | 0.75 | 0.27 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $2,166,260K ÷ $3,931,560K
= 0.55
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. Northern Oil and Gas Inc.'s fixed asset turnover has fluctuated over the past five years, with values of 0.55, 0.63, 0.40, 0.75, and 0.27 in 2023, 2022, 2021, 2020, and 2019 respectively.
A decreasing trend in fixed asset turnover ratio indicates that the company is generating less revenue relative to its investment in fixed assets. This could suggest inefficiencies in asset utilization, excess capacity, or declining sales. Conversely, an increasing trend would signify improved efficiency in generating revenue from fixed assets.
In 2023, Northern Oil and Gas Inc. had a fixed asset turnover of 0.55, indicating that the company generated $0.55 in revenue for every $1 invested in fixed assets. While this is lower than the 2022 and 2020 values of 0.63 and 0.75 respectively, it is an improvement over the 2021 and 2019 values of 0.40 and 0.27.
Overall, Northern Oil and Gas Inc.'s fixed asset turnover ratio has shown variability over the past five years, with potential implications for the company's operational efficiency and asset utilization. Further analysis and comparison with industry benchmarks may provide additional insights into the company's performance in this area.
Peer comparison
Dec 31, 2023