Northern Oil & Gas Inc (NOG)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	878,508	558,109	341,571	1,363,380	358,944
Payables	US$ in thousands	192,672	128,582	65,464	35,803	69,395
Payables turnover		4.56	4.34	5.22	38.08	5.17

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $878,508K ÷ $192,672K
= 4.56

The payables turnover ratio for Northern Oil and Gas Inc. has consistently been 0.00 over the past five years (2019-2023). This suggests that the company is not effectively managing its accounts payable. A payables turnover ratio of 0.00 indicates that the company is not utilizing its suppliers' credit effectively or is not paying its suppliers in a timely manner. This could potentially strain the company's relationships with its suppliers and impact its ability to negotiate favorable credit terms in the future.

It is important for Northern Oil and Gas Inc. to analyze its payables turnover ratio and take corrective actions to improve its accounts payable management. This may involve optimizing payment schedules, negotiating better payment terms with suppliers, or implementing more efficient invoice processing systems. By improving its payables turnover ratio, the company can enhance its cash flow management, strengthen supplier relationships, and potentially reduce costs associated with late payments or missed discounts.