Northern Oil & Gas Inc (NOG)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	1,136,410	856,669	65,614	-847,704	2,911
Long-term debt	US$ in thousands	1,835,550	1,525,410	803,437	879,843	1,118,160
Total stockholders’ equity	US$ in thousands	2,047,680	745,260	215,135	-223,304	558,643
Return on total capital		29.26%	37.73%	6.44%	-129.12%	0.17%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,136,410K ÷ ($1,835,550K + $2,047,680K)
= 29.26%

Northern Oil and Gas Inc.'s return on total capital has fluctuated over the past five years. The return on total capital was highest in 2022 at 37.57% and lowest in 2019 at 3.69%. The return on total capital for 2023 decreased compared to the previous year, standing at 28.89%. This decline could signify a potential decrease in the company's ability to generate profits from its invested capital. The return on total capital provides insight into how effectively the company is utilizing its capital to generate returns for its stakeholders. It is essential for Northern Oil and Gas Inc. to closely monitor and improve its return on total capital to ensure sustainable growth and profitability in the long term.