Northern Oil & Gas Inc (NOG)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.41 | 0.48 | 0.46 | 0.53 | 0.53 | 0.47 | 0.50 | 0.55 | 0.53 | 0.69 | 0.73 | 0.94 | 1.01 | 0.90 | 0.73 | 0.44 | 0.59 | 0.60 | 0.57 | 0.60 |
| Debt-to-capital ratio | 0.47 | 0.59 | 0.54 | 0.63 | 0.67 | 0.62 | 0.88 | 1.03 | 0.79 | 1.23 | 1.27 | 1.28 | 1.34 | 1.10 | 0.87 | 0.49 | 0.67 | 0.69 | 0.69 | 0.73 |
| Debt-to-equity ratio | 0.90 | 1.46 | 1.18 | 1.68 | 2.05 | 1.65 | 7.22 | — | 3.73 | — | — | — | — | — | 6.57 | 0.97 | 2.00 | 2.22 | 2.20 | 2.68 |
| Financial leverage ratio | 2.19 | 3.06 | 2.59 | 3.19 | 3.86 | 3.49 | 14.36 | — | 7.08 | — | — | — | — | — | 8.98 | 2.22 | 3.41 | 3.70 | 3.84 | 4.46 |
Northern Oil and Gas Inc.'s solvency ratios indicate the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown some fluctuation over the quarters, ranging from 0.41 to 0.53. This ratio suggests that between 41% to 53% of the company's assets are financed by debt. A decreasing trend in this ratio indicates a better financial position.
The debt-to-capital ratio has also varied, showing a range from 0.47 to 1.03. This ratio reflects the proportion of the company's capital that is funded by debt, with a higher ratio indicating higher financial risk. Northern Oil and Gas Inc. has demonstrated some inconsistency in this ratio over the periods analyzed.
The debt-to-equity ratio has displayed significant fluctuations, ranging from 0.90 to 7.22. This ratio indicates the extent to which the company is using debt to finance its operations compared to equity. The higher the ratio, the more leveraged the company is, which can increase financial risk. Northern Oil and Gas Inc. appears to have actively managed this ratio to reduce its reliance on debt in some quarters.
The financial leverage ratio has also shown fluctuations, ranging from 2.19 to 14.36. This ratio assesses the company's use of debt in its capital structure, with a higher ratio indicating higher financial risk. Northern Oil and Gas Inc. has demonstrated variability in its financial leverage, indicating changes in its capital structure over the periods examined.
Overall, Northern Oil and Gas Inc.'s solvency ratios suggest that the company has been actively managing its debt levels to maintain a balance between debt and equity financing. Monitoring these ratios over time can provide insight into the company's long-term financial health and risk management strategies.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | -12.31 | -6.52 | 6.23 | 0.04 | 4.17 | 3.24 | 1.41 |
Northern Oil and Gas Inc.'s interest coverage has exhibited some fluctuations over the past eight quarters. In Q4 2023, the interest coverage ratio stood at 8.27, indicating that the company generated 8.27 times more earnings before interest and taxes (EBIT) than the interest expenses incurred during that period. This was a decrease from the previous quarter, where the ratio was 6.55.
During Q2 2023, the interest coverage ratio improved significantly to 12.89, suggesting a strong ability to meet interest obligations, and it further increased to 15.17 in Q1 2023, reflecting a robust financial position. However, in Q1 2022, the interest coverage ratio was negative at -0.74, indicating that the company's EBIT was insufficient to cover its interest expenses during that period.
Overall, Northern Oil and Gas Inc.'s interest coverage has shown variability, with some quarters presenting a solid ability to cover interest obligations comfortably, while others have demonstrated challenges in meeting those expenses from operating earnings alone. Monitoring this ratio over time will be crucial to assess the company's financial health and debt servicing capacity.