Northern Oil & Gas Inc (NOG)

Return on total capital

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 1,136,408 821,130 1,383,603 1,415,488 856,668 878,680 300,887 -45,332 65,615 -254,011 -499,518 -1,309,222 -847,704 -806,483 -472,225 475,195 2,910 328,748 252,274 115,953
Long-term debt US$ in thousands 1,835,550 2,057,360 1,672,550 1,756,950 1,525,410 1,169,220 1,102,210 1,119,500 803,437 858,415 801,998 817,061 879,843 918,327 924,171 975,282 1,118,160 1,140,070 857,198 839,229
Total stockholders’ equity US$ in thousands 2,047,680 1,407,790 1,415,800 1,048,070 745,260 709,097 152,650 -35,302 215,135 -157,710 -168,217 -180,682 -223,304 -83,731 140,729 1,009,010 558,643 514,114 389,649 312,760
Return on total capital 29.26% 23.70% 44.80% 50.46% 37.73% 46.78% 23.98% -4.18% 6.44% -36.25% -78.82% -205.73% -129.12% -96.63% -44.34% 23.95% 0.17% 19.87% 20.23% 10.07%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,136,408K ÷ ($1,835,550K + $2,047,680K)
= 29.26%

Northern Oil and Gas Inc.'s return on total capital has shown varying trends over the past eight quarters. In Q1 2022, the company had a negative return on total capital of -4.31%, indicating that it was not effectively utilizing its total capital to generate profits. However, the performance significantly improved in subsequent quarters, with the return on total capital increasing to 23.77% in Q2 2022 and reaching a peak of 50.01% in Q1 2023.

While there was a slight decline in Q2 2023 with a return on total capital of 44.28%, the company bounced back in Q3 2023 with a return on total capital of 23.24%. The most recent data point for Q4 2023 shows a return on total capital of 28.89%, indicating that the company continues to generate favorable returns on its total capital.

Overall, the trend in Northern Oil and Gas Inc.'s return on total capital suggests that the company has been able to efficiently utilize its total capital to generate profits, with some fluctuations in performance across the quarters. Monitoring this ratio over time will be important to assess the company's ability to sustain and improve its profitability levels.