Northern Oil & Gas Inc (NOG)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 500,743 | 509,407 | 320,485 | 215,328 | 125,629 |
| Total current liabilities | US$ in thousands | 544,270 | 385,761 | 344,972 | 327,557 | 182,475 |
| Current ratio | 0.92 | 1.32 | 0.93 | 0.66 | 0.69 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $500,743K ÷ $544,270K
= 0.92
The current ratio of Northern Oil & Gas Inc has shown a fluctuating trend over the past five years. In 2020 and 2021, the company's current ratio was below 1, indicating that its current assets were insufficient to cover its current liabilities. However, there was an improvement in the following years, with the ratio increasing to 0.93 in 2022, 1.32 in 2023, and then dropping slightly to 0.92 in 2024.
While the current ratio for 2023 and 2024 suggests that the company had a comfortable position in meeting its short-term obligations, the dip in 2024 requires further evaluation to understand the potential reasons behind it. Overall, it is important for Northern Oil & Gas Inc to maintain a healthy current ratio above 1 to ensure it can cover its short-term liabilities without liquidity issues.
Peer comparison
Dec 31, 2024