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.