Northern Oil & Gas Inc (NOG)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	520,308	922,969	773,237	6,361	-906,041
Total assets	US$ in thousands	5,603,820	4,484,260	2,875,180	1,522,870	872,089
ROA		9.28%	20.58%	26.89%	0.42%	-103.89%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $520,308K ÷ $5,603,820K
= 9.28%

The return on assets (ROA) for Northern Oil & Gas Inc has shown significant fluctuations over the past few years. In December 31, 2020, the ROA was a negative -103.89%, indicating that the company had incurred substantial losses relative to its assets. However, there was a notable recovery in December 31, 2021, with the ROA improving to 0.42%, although still relatively low.

Subsequently, Northern Oil & Gas Inc experienced a significant improvement in its ROA performance, reaching 26.89% by December 31, 2022, and maintaining strong profitability in the following years. The ROA stood at 20.58% in December 31, 2023, indicating continued efficiency in generating profits from its assets. However, there was a slight decline in December 31, 2024, with the ROA decreasing to 9.28%.

Overall, the trend in Northern Oil & Gas Inc's ROA demonstrates a volatile financial performance, with a sharp recovery from significant losses in 2020 to achieving positive returns on its assets in the subsequent years. The company showed improved efficiency in utilizing its assets to generate profits, although there was some fluctuation in profitability levels.