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.