Northern Oil & Gas Inc (NOG)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	509,407	320,485	215,328	125,629	133,037
Total current liabilities	US$ in thousands	385,761	344,972	327,557	182,475	203,477
Current ratio		1.32	0.93	0.66	0.69	0.65

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $509,407K ÷ $385,761K
= 1.32

The current ratio of Northern Oil and Gas Inc. has shown an improving trend over the past five years. From 2019 to 2023, the current ratio has increased from 0.65 to 1.32, indicating the company's ability to cover its short-term liabilities with its current assets has strengthened significantly.

In 2023, the current ratio of 1.32 suggests that Northern Oil and Gas Inc. had $1.32 in current assets for every $1 in current liabilities, signaling a healthy liquidity position compared to the previous years. This improvement implies that the company has sufficient current assets to meet its short-term obligations, such as debt payments and operational expenses.

The consistent increase in the current ratio may indicate that the company has managed its current assets and liabilities effectively, possibly through better inventory management, efficient accounts receivable collection, or prudent investment in short-term assets. It also reflects positively on the company's financial health and ability to withstand economic uncertainties or unexpected cash flow challenges in the short term.

Overall, the upward trend in Northern Oil and Gas Inc.'s current ratio from 2019 to 2023 demonstrates an enhanced liquidity position and a strengthened financial standing, which could be viewed positively by investors and creditors alike.