Northern Oil & Gas Inc (NOG)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	1,121,860	853,192	77,959	-841,243	55,509
Total assets	US$ in thousands	4,484,260	2,875,180	1,522,870	872,089	1,905,460
Operating ROA		25.02%	29.67%	5.12%	-96.46%	2.91%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $1,121,860K ÷ $4,484,260K
= 25.02%

Operating return on assets (operating ROA) measures how efficiently a company generates operating income from its assets. For Northern Oil and Gas Inc., the operating ROA has shown fluctuating trends over the past five years.

In 2019, the operating ROA was relatively low at 3.25%, indicating a lower operating income generated from the company's assets. However, there was a significant improvement in 2020, with the operating ROA jumping to 25.85%, reflecting a substantial increase in efficiency in utilizing assets to generate operating income.

The trend continued to be positive in 2021, although the operating ROA dropped to 5.12%, signaling a slight decrease in efficiency compared to the previous year. However, there was a notable rebound in 2022, as the operating ROA increased to 29.67%, reaching the highest level in the five-year period and indicating improved profitability from asset utilization.

In the most recent year, 2023, Northern Oil and Gas Inc. reported an operating ROA of 25.02%, showing a slight decline compared to the previous year but still maintaining a relatively strong level of efficiency in generating operating income from its assets.

Overall, the analysis suggests that Northern Oil and Gas Inc. has demonstrated varying levels of efficiency in utilizing its assets to generate operating income over the past five years, with notable improvements in 2020 and 2022.