Gross Margin % is calculated as gross profit divided by its revenue. Northern Oil & Gas's Gross Profit for the
three
months ended in Jun. 2022 was $386 Mil. Northern Oil & Gas's Revenue for the
three
months ended in Jun. 2022 was $550 Mil. Therefore, Northern Oil & Gas's Gross Margin % for the quarter that ended in Jun. 2022 was 70.29%.
Warning Sign:
Northern Oil & Gas Inc gross margin has been in long-term decline. The average rate of decline per year is -5.9%.
The historical rank and industry rank for Northern Oil & Gas's Gross Margin % or its related term are showing as below:
NOG'
s Gross Margin % Range Over the Past 10 Years
Min: -4.33 Med: 39.48 Max: 60.15
Current: 67.27
During the past 13 years, the highestGross Margin % of Northern Oil & Gas was 60.15%. The lowest was -4.33%. And the median was 39.48%.
NOG's Gross Margin % is ranked better than 85.67% of 928
companies
in the Oil & Gas industry
Industry Median: 27.51
vs NOG: 67.27
Northern Oil & Gas had a gross margin of 70.29% for the quarter that ended in Jun. 2022 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Northern Oil & Gas was -5.90% per year.
Northern Oil & Gas Gross Margin % Historical Data
The historical data trend for Northern Oil & Gas's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
* Premium members only.
Northern Oil & Gas Annual Data
Trend
Dec12
Dec13
Dec14
Dec15
Dec16
Dec17
Dec18
Dec19
Dec20
Dec21
Gross Margin %
42.03
53.08
35.65
4.88
60.15
Northern Oil & Gas Quarterly Data
Sep17
Dec17
Mar18
Jun18
Sep18
Dec18
Mar19
Jun19
Sep19
Dec19
Mar20
Jun20
Sep20
Dec20
Mar21
Jun21
Sep21
Dec21
Mar22
Jun22
Gross Margin %
59.19
61.85
64.37
68.82
70.29
Competitive Comparison
For the Oil & Gas E&P subindustry, Northern Oil & Gas's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Northern Oil & Gas Gross Margin % Distribution
For the Oil & Gas industry and Energy sector, Northern Oil & Gas's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Northern Oil & Gas's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Northern Oil & Gas (NYSE:NOG) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Northern Oil & Gas had a gross margin of 70.29% for the quarter that ended in Jun. 2022 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Northern Oil & Gas Gross Margin % Related Terms
Thank you for viewing the detailed overview of Northern Oil & Gas's Gross Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Northern Oil & Gas Inc is an independent energy company engaged in the acquisition, exploration, exploitation, development, and production of crude oil and natural gas properties. Its principal business is crude oil and natural gas exploration, development, and production with operations in North Dakota and Montana that primarily target the Bakken and Three Forks formations in the Williston Basin of the United States.
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