ONEOK Inc (OKE)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | 18.67 | 41.46 | 28.65 | 22.43 | 22.26 |
| Receivables turnover | 9.86 | 14.61 | 11.47 | 10.29 | 12.17 |
| Payables turnover | 7.63 | 13.18 | 9.20 | 7.10 | 5.61 |
| Working capital turnover | — | — | — | 16.26 | — |
Oneok Inc.'s activity ratios provide insights into how efficiently the company is managing its assets and liabilities to generate revenue.
1. Inventory turnover:
- Oneok Inc.'s inventory turnover has shown significant fluctuations over the years, ranging from a low of 13.40 in 2019 to a high of 120.21 in 2022. The company's inventory turnover ratio decreased in 2023 to 15.16 but remains relatively high compared to previous years. This indicates that Oneok Inc. is efficiently managing its inventory levels and quickly converting inventory into sales.
2. Receivables turnover:
- The receivables turnover ratio measures how quickly the company collects outstanding receivables. Oneok Inc.'s receivables turnover has fluctuated over the years, with a peak of 14.61 in 2022 and a low of 10.29 in 2020. In 2023, the ratio decreased to 10.37, indicating a slightly slower collection of receivables compared to the previous year.
3. Payables turnover:
- Payables turnover reflects how efficiently a company pays its suppliers and vendors. Oneok Inc.'s payables turnover ratio has varied over the years, with a notable increase to 13.17 in 2022 from 5.61 in 2019. In 2023, the ratio decreased to 7.63, indicating that the company took longer to pay its suppliers compared to the previous year.
4. Working capital turnover:
- The absence of data for working capital turnover in recent years suggests the company may not be utilizing this ratio for performance evaluation or disclosure purposes. However, in 2020, the working capital turnover was 16.26, indicating that for every dollar of working capital invested, the company generated $16.26 in revenue.
Overall, the activity ratios for Oneok Inc. provide valuable insights into the efficiency of the company's operations in managing inventory, receivables, and payables. The fluctuations in these ratios over the years highlight changes in the company's operational effectiveness and financial management practices.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 19.55 | 8.80 | 12.74 | 16.27 | 16.40 |
| Days of sales outstanding (DSO) | days | 37.02 | 24.98 | 31.82 | 35.46 | 29.99 |
| Number of days of payables | days | 47.85 | 27.70 | 39.68 | 51.38 | 65.06 |
Activity ratios provide insights into how efficiently a company manages its assets and liabilities to generate revenues. Let's analyze Oneok Inc.'s activity ratios based on the data provided:
1. Days of Inventory on Hand (DOH):
- Oneok's inventory turnover has fluctuated over the years, with a significant increase from 2020 to 2021 followed by a decrease in 2022. In 2023, the company had 24.08 days of inventory on hand, indicating an increase in the average number of days it takes to sell its inventory compared to the previous year.
2. Days of Sales Outstanding (DSO):
- Oneok's DSO reflects the average number of days it takes to collect payment after making a sale. The DSO has been variable over the past five years, with the highest DSO in 2020 and 2021 and a decrease in 2022. In 2023, the DSO increased to 35.21 days, suggesting a longer collection period compared to the previous year.
3. Number of Days of Payables:
- Oneok's payables period indicates the average number of days it takes the company to pay its suppliers. The number of days of payables has fluctuated over the years, with a decrease in 2022 followed by an increase in 2023. The company had 47.85 days of payables in 2023, implying a longer period to settle its payables in that year.
Overall, the analysis of Oneok Inc.'s activity ratios reveals fluctuations in inventory management, collection of receivables, and payment of payables over the past five years. These changes could impact the company's working capital management and operational efficiency, highlighting the need for further evaluation of its inventory, receivables, and payables processes.
See also:
ONEOK Inc Short-term (Operating) Activity Ratios
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.51 | 1.12 | 0.86 | 0.45 | 0.55 |
| Total asset turnover | 0.38 | 0.92 | 0.70 | 0.37 | 0.47 |
Oneok Inc.'s long-term activity ratios provide insights into the company's efficiency in utilizing its fixed and total assets to generate revenue over the years.
The fixed asset turnover ratio indicates the company's ability to generate revenue from its fixed assets. From 2020 to 2022, the ratio improved significantly from 0.45 to 1.12, signaling that the company generated more revenue per dollar invested in fixed assets. However, in 2023, the ratio dropped to 0.54, which could indicate a decrease in the efficiency of utilizing fixed assets to generate revenue compared to the previous year.
The total asset turnover ratio reflects how effectively the company generates sales from all its assets. There was a gradual improvement in the total asset turnover ratio from 2019 to 2022, with the ratio increasing from 0.47 to 0.92. This suggests that Oneok Inc. became more efficient at using its total assets to generate sales during this period. However, in 2023, the total asset turnover ratio decreased to 0.40, indicating a potential decrease in sales generated from the company's total assets compared to the previous year.
Overall, the analysis of Oneok Inc.'s long-term activity ratios highlights fluctuations in the company's efficiency in utilizing both fixed and total assets to generate revenue over the years. Further investigation into the reasons behind these fluctuations would provide a more comprehensive understanding of the company's operational performance.