Northern Oil & Gas Inc (NOG)
Cash conversion cycle
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | — | — | — | — | 46.95 | 56.15 | 24.11 | — | — | — | 8.30 | 5.51 | 1.15 | 3.22 | 61.30 | 124.19 | 145.41 | 216.16 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 46.95 | 56.15 | 24.11 | 0.00 | 0.00 | 0.00 | 8.30 | 5.51 | 1.15 | 3.22 | 61.30 | 124.19 | 145.41 | 216.16 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Northern Oil & Gas Inc has shown fluctuations over the years, indicating changes in its efficiency in managing cash flow.
In March 2020, the company's cash conversion cycle was 216.16 days, indicating a relatively long cycle, which means the company took a significant amount of time to convert its investments in production and other activities to cash flow.
By December 2020, the cash conversion cycle decreased significantly to 61.30 days, which could suggest an improvement in the company's efficiency in managing its working capital and converting it into cash.
The cycle further reduced to 3.22 days in March 2021, and eventually reached 0.00 days by June 2022, indicating that the company was able to efficiently manage its cash flows and convert investments into cash quickly during this period.
However, the cycle increased to 56.15 days by March 2023 and then decreased to 24.11 days by December 2022, showing some fluctuations in the efficiency of cash conversion during these periods.
Overall, a decreasing trend in the cash conversion cycle is generally seen as positive, as it indicates that the company is managing its working capital effectively, converting investments into sales, and collecting cash efficiently. It is important for Northern Oil & Gas Inc to continue monitoring and managing its cash conversion cycle to ensure optimal efficiency in its cash flow operations.
Peer comparison
Dec 31, 2024