Northern Oil & Gas Inc (NOG)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 837,831 | 1,121,860 | 853,192 | 415,315 | -2,716 |
| Total assets | US$ in thousands | 5,603,820 | 4,484,260 | 2,875,180 | 1,522,870 | 872,089 |
| Operating ROA | 14.95% | 25.02% | 29.67% | 27.27% | -0.31% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $837,831K ÷ $5,603,820K
= 14.95%
The operating return on assets (operating ROA) of Northern Oil & Gas Inc has shown significant variability over the past five years. The company experienced a negative operating ROA of -0.31% as of December 31, 2020, indicating that the company was not effectively utilizing its assets to generate operating income.
However, there was a substantial improvement in the operating ROA in the subsequent years. As of December 31, 2021, the operating ROA increased significantly to 27.27%, demonstrating a strong performance in generating operating income relative to its assets.
The positive trend continued in the following years, with the operating ROA reaching 29.67% as of December 31, 2022, and then slightly decreasing to 25.02% by December 31, 2023. Despite the slight decrease, the company continued to perform well in generating operating income relative to its assets.
By December 31, 2024, the operating ROA decreased further to 14.95%, indicating a decline in the company's efficiency in generating operating income from its assets compared to the previous years.
Overall, Northern Oil & Gas Inc's operating ROA has shown both positive and negative trends over the five-year period, highlighting fluctuations in the company's operating efficiency and profitability. Monitoring this ratio can provide insights into the company's operational performance and asset utilization.
Peer comparison
Dec 31, 2024