Northern Oil & Gas Inc (NOG)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 59.45% | 64.46% | 31.26% | -146.90% | 24.02% |
| Operating profit margin | 51.79% | 54.32% | 15.69% | -152.34% | 11.75% |
| Pretax margin | 46.20% | 49.43% | 1.33% | -164.11% | -16.16% |
| Net profit margin | 42.61% | 49.23% | 1.28% | -164.08% | -16.16% |
Northern Oil and Gas Inc.'s profitability ratios indicate varying levels of performance over the past five years. The gross profit margin has remained consistent at 100% across all five years, indicating that the company has been able to effectively manage its cost of goods sold.
The operating profit margin has fluctuated, with a peak in 2022 at 54.32% and a low in 2021 at 15.69%. This suggests that the company's operating expenses have not been as stable, impacting its profitability at the operating level.
The pretax margin shows significant volatility, ranging from a positive 49.43% in 2022 to a negative -164.11% in 2020. This indicates fluctuations in the company's ability to generate profit before accounting for taxes, potentially due to fluctuations in revenue or cost structures.
The net profit margin has also shown significant fluctuations, with a negative margin in 2021 and 2020, indicating that the company incurred losses at the net income level during those years. However, there has been improvement in profitability, with positive margins in 2022 and 2023. This suggests that the company has taken steps to improve its bottom line performance in recent years.
Overall, Northern Oil and Gas Inc.'s profitability ratios demonstrate the importance of effectively managing costs and expenses to ensure sustainable profitability and financial performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 25.02% | 29.67% | 5.12% | -96.46% | 2.91% |
| Return on assets (ROA) | 20.58% | 26.89% | 0.42% | -103.89% | -4.01% |
| Return on total capital | 29.26% | 37.73% | 6.44% | -129.12% | 0.17% |
| Return on equity (ROE) | 45.07% | 103.75% | 2.96% | — | -13.66% |
Northern Oil and Gas Inc.'s profitability ratios reflect fluctuations over the past five years. In terms of operating profitability, the company has shown a strong performance, with Operating Return on Assets (Operating ROA) ranging from 5.12% in 2021 to 29.67% in 2022. This indicates the company's ability to generate profits from its core operations.
Return on Assets (ROA) has shown an improving trend, with positive values in the last three years after significant negative values in 2020 and 2019. The recent ROA of 20.58% in 2023 suggests that the company is efficiently utilizing its assets to generate earnings.
Return on Total Capital has also displayed an upward trend, reaching 28.89% in 2023. This ratio demonstrates the company's ability to generate profits from both equity and debt capital employed in its operations.
Return on Equity (ROE) has been volatile, with a high of 97.64% in 2022 and lows of -3.90% in 2021 and -13.66% in 2019. The significant fluctuations may indicate varying levels of shareholder value creation and possibly, inconsistent financial performance.
In conclusion, Northern Oil and Gas Inc. has shown improved profitability in recent years, particularly in terms of operating efficiency and return on assets. However, the fluctuating ROE suggests a need for further analysis to understand the factors driving the company's return on equity.