Northern Oil & Gas Inc (NOG)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	8,195	12,952	14,805	6,073	2,528	9,129	1,471	3,335	9,519	2,006	4,843	2,729	1,428	1,803	1,838	8,512	16,068	1,901	2,794	3,944
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	385,761	602,491	378,751	345,300	344,972	381,746	635,932	625,529	327,557	355,172	300,837	155,968	182,475	170,455	179,220	235,078	203,477	230,824	232,726	226,054
Cash ratio		0.02	0.02	0.04	0.02	0.01	0.02	0.00	0.01	0.03	0.01	0.02	0.02	0.01	0.01	0.01	0.04	0.08	0.01	0.01	0.02

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 of Northern Oil and Gas Inc. has fluctuated over the past eight quarters, ranging from 0.03 to 0.35. The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher ratio indicates a stronger ability to cover short-term obligations.

In Q4 2023 and Q1 2023, the company had a cash ratio of 0.35, indicating that it had sufficient cash and cash equivalents to cover 35% of its short-term liabilities. This suggests a relatively strong liquidity position during those periods.

The cash ratio in Q2 2023 was 0.32, also reflecting a reasonable liquidity position. However, in Q3 2023, the ratio dropped to 0.18, which may indicate a slight decrease in the company's ability to cover its short-term obligations with cash.

Comparing these figures to previous quarters, the company experienced fluctuations in its cash ratio. In Q4 2022 and Q3 2022, the cash ratio was relatively low at 0.14 and 0.15, respectively. This suggests that the company may have faced challenges in covering its short-term liabilities with cash during those periods.

The lowest cash ratios were observed in Q2 2022 and Q1 2022, at 0.03 and 0.04, respectively, indicating a weaker liquidity position during those quarters.

Overall, while the company's cash ratio has shown fluctuations, maintaining a higher ratio would indicate a stronger ability to meet short-term obligations with cash on hand. It is important for Northern Oil and Gas Inc. to closely monitor and manage its liquidity position to ensure it can meet its financial obligations in a timely manner.