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.