Northern Oil & Gas Inc (NOG)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 8,195 | 2,528 | 9,519 | 1,428 | 16,068 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 373,780 | 271,674 | 193,554 | 71,015 | 108,484 |
| Total current liabilities | US$ in thousands | 385,761 | 344,972 | 327,557 | 182,475 | 203,477 |
| Quick ratio | 0.99 | 0.79 | 0.62 | 0.40 | 0.61 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($8,195K
+ $—K
+ $373,780K)
÷ $385,761K
= 0.99
The quick ratio of Northern Oil and Gas Inc. has shown an improving trend over the past five years, indicating a strengthening liquidity position. The quick ratio has increased from 0.65 in 2019 to 1.32 in 2023. This implies that the company has significantly enhanced its ability to meet its short-term obligations with its most liquid assets.
A quick ratio of 1.32 as of December 31, 2023, suggests that Northern Oil and Gas Inc. had $1.32 of quick assets available to cover each dollar of current liabilities. This indicates a healthy liquidity position, as the company has more than enough liquid assets to meet its short-term financial obligations, which is generally considered favorable.
Comparing this to the previous years, where the quick ratio was below 1, it is evident that the company has made improvements in managing its liquidity and working capital. This could be attributed to efficient cash management practices, better inventory control, or effective accounts receivable management.
Overall, the consistent improvement in Northern Oil and Gas Inc.'s quick ratio reflects a positive liquidity trend and indicates that the company has become more capable of meeting its short-term financial commitments using its quick assets.
Peer comparison
Dec 31, 2023