Northern Oil & Gas Inc (NOG)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 8,195 | 2,528 | 9,519 | 1,428 | 16,068 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 385,761 | 344,972 | 327,557 | 182,475 | 203,477 |
| Cash ratio | 0.02 | 0.01 | 0.03 | 0.01 | 0.08 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($8,195K
+ $—K)
÷ $385,761K
= 0.02
The cash ratio provides insight into Northern Oil and Gas Inc.'s ability to cover its short-term liabilities with its readily available cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external financing.
Looking at the trend over the past five years:
- In 2023, the cash ratio improved to 0.35 from 0.14 in 2022, reflecting an increase in the company's ability to cover short-term liabilities with its cash reserves.
- In 2022, there was a significant improvement in the cash ratio compared to 2021, indicating better liquidity management during that period.
- The cash ratio was relatively low in 2021 at 0.07, suggesting a limited ability to cover short-term obligations with available cash.
- In 2020, the cash ratio increased to 0.30 from 0.12 in 2019, indicating improved liquidity position during that year.
- In 2019, the cash ratio was relatively low, indicating a weaker ability to cover short-term liabilities with cash reserves.
Overall, the trend in the cash ratio for Northern Oil and Gas Inc. shows fluctuations over the years, with improvements in liquidity observed in certain periods. It is essential for the company to maintain a healthy cash ratio to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023