Northern Oil & Gas Inc (NOG)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 838,534 | 1,136,410 | 856,669 | 65,614 | -847,704 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,320,440 | 2,047,680 | 745,260 | 215,134 | -223,304 |
| Return on total capital | 36.14% | 55.50% | 114.95% | 30.50% | — |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $838,534K ÷ ($—K + $2,320,440K)
= 36.14%
The return on total capital for Northern Oil & Gas Inc has shown significant variations over the years. In 2021, the return on total capital was 30.50%, indicating that the company generated a return of 30.50% on its total invested capital. This notably increased to 114.95% in 2022, showcasing a substantial improvement in capital efficiency.
However, in 2023, the return on total capital decreased to 55.50%, suggesting a slight decline in capital productivity compared to the previous year. Moreover, in 2024, the return on total capital further declined to 36.14%, indicating a continued but moderated decrease in capital efficiency.
Overall, while the return on total capital has shown fluctuations over the years, it is essential for Northern Oil & Gas Inc to maintain focus on effectively utilizing its total capital to generate sustainable returns for its investors and stakeholders.
Peer comparison
Dec 31, 2024