Northern Oil & Gas Inc (NOG)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	2,166,258	1,743,120	2,220,787	2,185,679	2,059,923	2,008,734	1,348,601	931,960	496,899	227,784	143,599	139,461	624,849	633,787	820,348	986,121	612,025	1,023,318	891,704	772,110
Property, plant and equipment	US$ in thousands	3,931,560	3,788,640	3,216,980	2,915,940	2,482,930	2,015,060	1,771,250	1,689,540	1,253,340	1,064,510	930,080	742,385	735,204	823,002	1,009,080	1,773,800	1,748,590	1,676,960	1,293,280	1,240,690
Fixed asset turnover		0.55	0.46	0.69	0.75	0.83	1.00	0.76	0.55	0.40	0.21	0.15	0.19	0.85	0.77	0.81	0.56	0.35	0.61	0.69	0.62

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,166,258K ÷ $3,931,560K
= 0.55

The fixed asset turnover ratio of Northern Oil and Gas Inc. has fluctuated over the past eight quarters, ranging from a low of 0.26 in Q1 2022 to a high of 0.75 in Q1 2023 and Q2 2022. This ratio measures how efficiently the company is generating sales from its investment in fixed assets. A higher ratio suggests better utilization of fixed assets to generate sales.

The trend in the fixed asset turnover ratio indicates that the company's efficiency in utilizing its fixed assets to generate revenue has improved since Q1 2022. However, there was a slight decline in efficiency in Q3 2023 compared to the previous quarter. It is important for management to analyze the reasons behind this decline and take appropriate actions to improve asset utilization.

Overall, the company's fixed asset turnover ratio has shown some variability, indicating fluctuations in how effectively Northern Oil and Gas Inc. is utilizing its fixed assets to generate revenue. Further analysis of the company's operational performance and investment in fixed assets may provide insights into its long-term efficiency and profitability.