Northern Oil & Gas Inc (NOG)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,835,550	1,525,410	803,437	879,843	1,118,160
Total assets	US$ in thousands	4,484,260	2,875,180	1,522,870	872,089	1,905,460
Debt-to-assets ratio		0.41	0.53	0.53	1.01	0.59

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,835,550K ÷ $4,484,260K
= 0.41

The debt-to-assets ratio for Northern Oil and Gas Inc. has shown some fluctuations over the past five years. In 2023, the ratio decreased to 0.41 from 0.53 in 2022, which indicates that the company has reduced its level of debt relative to its total assets. This improvement suggests that Northern Oil and Gas Inc. may be managing its debt more effectively or increasing its asset base.

Comparing 2023 to earlier years, the company has shown a decline in the debt-to-assets ratio, which is a positive trend from a financial stability perspective. In 2020, the ratio was significantly higher at 1.08, indicating a higher level of indebtedness relative to the size of its asset base. The improvement since then reflects the company's efforts to strengthen its financial position and reduce its reliance on debt financing.

Overall, the decreasing trend in the debt-to-assets ratio for Northern Oil and Gas Inc. suggests that the company has been working to reduce its debt burden and enhance its financial health. However, continuous monitoring of this ratio in conjunction with other financial metrics is advisable to assess the company's overall financial sustainability and leverage levels.