Northern Oil & Gas Inc (NOG)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 838,534 | 1,189,563 | 797,962 | 817,757 | 1,136,406 | 821,129 | 1,383,604 | 1,415,489 | 856,669 | 878,678 | 300,884 | -45,334 | 65,613 | -254,012 | -499,518 | -1,309,222 | -847,704 | -805,036 | -470,781 | 476,639 |
| Interest expense (ttm) | US$ in thousands | 157,717 | 148,971 | 149,174 | 143,446 | 135,664 | 122,959 | 106,054 | 92,496 | 80,330 | 72,421 | 66,872 | 63,486 | 59,019 | 56,478 | 56,529 | 55,462 | 58,503 | 66,985 | 73,858 | 77,679 |
| Interest coverage | 5.32 | 7.99 | 5.35 | 5.70 | 8.38 | 6.68 | 13.05 | 15.30 | 10.66 | 12.13 | 4.50 | -0.71 | 1.11 | -4.50 | -8.84 | -23.61 | -14.49 | -12.02 | -6.37 | 6.14 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $838,534K ÷ $157,717K
= 5.32
The interest coverage ratio for Northern Oil & Gas Inc has fluctuated significantly over the reported periods. The ratio indicates the company's ability to meet its interest obligations with its operating income.
The interest coverage ratio was positive in the most recent quarter of December 2024 at 5.32, showing that the company's operating income was able to cover its interest expenses. However, it is essential to note that the ratio has been volatile, with negative values in several periods prior to December 2024.
The trend in the interest coverage ratio shows periods of potential financial distress for the company, especially when the ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses. However, the ratio has shown improvement in recent quarters, reaching positive values, suggesting a better ability to meet interest obligations.
Investors and creditors may closely monitor this ratio to assess Northern Oil & Gas Inc's financial health and ability to service its debt obligations. It is crucial for the company to maintain a healthy interest coverage ratio to ensure financial stability and sustainable operations.
Peer comparison
Dec 31, 2024