Northern Oil & Gas Inc (NOG)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	922,969	773,237	6,361	-906,041	-76,318
Total assets	US$ in thousands	4,484,260	2,875,180	1,522,870	872,089	1,905,460
ROA		20.58%	26.89%	0.42%	-103.89%	-4.01%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $922,969K ÷ $4,484,260K
= 20.58%

Northern Oil and Gas Inc.'s return on assets (ROA) has fluctuated significantly over the past five years. In 2023, the ROA stood at 20.58%, demonstrating a strong performance and efficiency in generating profits relative to its assets. This represented a slight decrease from the previous year's ROA of 25.31%, indicating a potential decline in asset utilization efficiency.

In 2021, Northern Oil and Gas Inc. experienced a negative ROA of -0.55%, signaling that the company incurred a net loss relative to its assets during that period. This could be attributed to various factors such as poor operational performance or impairment charges affecting asset values.

The most significant decline in ROA was observed in 2020, where the ROA plummeted to -105.64%, indicating a substantial loss relative to the assets held by the company. This drastic decrease could be indicative of significant write-downs, impairments, or extraordinary events impacting the company's financial performance during that period.

In 2019, Northern Oil and Gas Inc. also experienced a negative ROA of -4.01%, albeit to a lesser extent compared to the following years. This indicates that the company struggled to generate profits from its assets, potentially due to operational inefficiencies or external economic challenges.

Overall, Northern Oil and Gas Inc.'s ROA has displayed volatility and varying performance levels over the past five years. It is crucial for the company to focus on improving asset utilization and operational efficiency to sustainably enhance its profitability and return on assets in the future.