Northern Oil & Gas Inc (NOG)

Receivables 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
Receivables	US$ in thousands	373,780	363,516	265,537	274,399	271,674	318,139	360,859	297,754	193,554	158,047	131,165	94,804	71,015	60,067	43,828	98,000	108,484	103,646	88,092	91,714
Receivables turnover		5.80	4.80	8.36	7.97	7.58	6.31	3.74	3.13	2.57	1.44	1.09	1.47	8.80	10.55	18.72	10.06	5.64	9.87	10.12	8.42

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,166,258K ÷ $373,780K
= 5.80

The receivables turnover ratio is a measure of how efficiently a company is able to collect cash from its customers. It is calculated by dividing total net credit sales by the average accounts receivable balance for a specific period.

In the case of Northern Oil and Gas Inc., the receivables turnover ratio has shown fluctuations over the past eight quarters. The higher the ratio, the better, as it indicates that the company is collecting cash from its customers more quickly.

In Q4 2023, the receivables turnover ratio was 5.80, which means that Northern Oil and Gas Inc. collected cash from its customers approximately 5.80 times during the quarter. This indicates a moderate level of efficiency in collecting accounts receivable.

Comparing this to the previous quarters, the company's receivables turnover ratio has generally been improving since Q1 2022 when it was 1.49. The significant increase to 8.36 in Q2 2023 suggests a very efficient collection of cash during that period. However, the ratio decreased slightly in Q4 2023 compared to Q2 2023 but remained higher than the ratios in previous quarters.

Overall, Northern Oil and Gas Inc. has shown improvement in its ability to collect cash from customers over the past quarters, although there have been fluctuations in the receivables turnover ratio. The company should continue to monitor and manage its accounts receivable effectively to maintain a healthy liquidity position.