Northern Oil & Gas Inc (NOG)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 38.64% | 47.92% | 66.25% | 60.15% | 4.88% |
| Operating profit margin | 38.72% | 58.83% | 42.96% | 42.59% | -0.84% |
| Pretax margin | 31.46% | 52.48% | 39.09% | 0.68% | -279.63% |
| Net profit margin | 24.05% | 48.40% | 38.94% | 0.65% | -279.58% |
Northern Oil & Gas Inc's profitability ratios have shown significant improvement over the years based on the provided data. The gross profit margin has increased from 4.88% in 2020 to 38.64% in 2024, indicating the company's ability to generate more profit from its revenue after accounting for the cost of goods sold.
Similarly, the operating profit margin has also experienced a positive trend, rising from -0.84% in 2020 to 38.72% in 2024. This demonstrates Northern Oil & Gas Inc's efficiency in managing its operating expenses and generating profit from its core business activities.
The pretax margin, reflecting the company's profitability before taxes, has shown a substantial improvement from -279.63% in 2020 to 31.46% in 2024. This suggests that Northern Oil & Gas Inc has been able to enhance its operational efficiency and profitability over the years.
Finally, the net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has also shown a positive trajectory from -279.58% in 2020 to 24.05% in 2024. This indicates that Northern Oil & Gas Inc has been able to effectively manage its costs and increase its net profit relative to its revenue.
Overall, Northern Oil & Gas Inc's profitability ratios have demonstrated significant improvement, showcasing the company's ability to enhance its profitability and operational efficiency over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.95% | 25.02% | 29.67% | 27.27% | -0.31% |
| Return on assets (ROA) | 9.28% | 20.58% | 26.89% | 0.42% | -103.89% |
| Return on total capital | 36.14% | 55.50% | 114.95% | 30.50% | — |
| Return on equity (ROE) | 22.42% | 45.07% | 103.75% | 2.96% | — |
Northern Oil & Gas Inc's profitability ratios have shown a mixed performance over the years. In terms of Operating Return on Assets (Operating ROA), the company faced a negative return in 2020 but improved significantly in 2021 and 2022, reaching impressive levels of 29.67% by the end of 2022. However, there was a slight decline in 2023 and a further drop to 14.95% in 2024.
When considering the Return on Assets (ROA), Northern Oil & Gas Inc demonstrated a sharp recovery from a negative figure in 2020 to 0.42% in 2021, followed by further improvements in 2022 and 2023. Although there was a decrease in 2024 to 9.28%, the company has generally shown positive returns on its assets over the years.
Looking at Return on Total Capital, the data is missing for 2020, but the company achieved a high return of 114.95% in 2022, indicating efficient use of both equity and debt to generate profits. The return decreased in 2023 and 2024 but remained above 30%, showing a relatively strong performance.
In terms of Return on Equity (ROE), Northern Oil & Gas Inc started with missing data in 2020 but experienced steady growth in returns over the following years. The company achieved a ROE of 103.75% in 2022, which was impressive, although there was a decline in 2023 and 2024.
Overall, Northern Oil & Gas Inc has shown improvements in its profitability ratios in recent years, with some fluctuations in performance. The company seems to have managed its assets and capital efficiently, leading to positive returns for shareholders and investors. Monitoring these ratios will be crucial for assessing the company's financial health and performance in the future.