Northern Oil & Gas Inc (NOG)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	680,817	1,000,740	776,338	6,594	-906,207
Revenue	US$ in thousands	2,163,760	1,907,010	1,985,800	975,092	324,069
Pretax margin		31.46%	52.48%	39.09%	0.68%	-279.63%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $680,817K ÷ $2,163,760K
= 31.46%

The pretax margin of Northern Oil & Gas Inc has shown a significant improvement over the years based on the provided data. The company experienced a substantial negative pretax margin of -279.63% as of December 31, 2020, indicating a notable loss before tax. However, by December 31, 2021, the pretax margin had improved to 0.68%, indicating the company was able to generate a small profit before tax.

The positive trend continued in the following years, with the pretax margin increasing to 39.09% as of December 31, 2022, and further improving to 52.48% by the end of December 31, 2023. This substantial growth in the pretax margin suggests that Northern Oil & Gas Inc was able to effectively control operating expenses and increase profitability before tax.

However, by December 31, 2024, the pretax margin slightly decreased to 31.46%, but still remained at a healthy level compared to the initial years. Overall, the consistent improvement in pretax margin showcases the company's ability to enhance operational efficiency and generate higher profits before tax during the period under review.