ONEOK Inc (OKE)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 17,157,000 | 17,259,030 | 19,198,560 | 21,462,560 | 22,386,560 | 22,775,020 | 21,397,670 | 18,790,630 | 16,540,310 | 13,690,400 | 11,328,480 | 9,600,250 | 8,542,240 | 8,635,270 | 8,724,240 | 9,521,090 | 10,164,380 | 10,637,470 | 11,768,130 | 12,271,080 |
| Property, plant and equipment | US$ in thousands | 32,697,000 | 32,089,000 | 20,229,000 | 20,040,000 | 19,952,000 | 19,789,800 | 19,601,200 | 19,425,200 | 19,319,900 | 19,221,900 | 19,181,500 | 19,125,300 | 19,154,900 | 19,029,300 | 18,981,200 | 18,629,500 | 18,348,700 | 17,362,900 | 16,336,200 | 15,518,000 |
| Fixed asset turnover | 0.52 | 0.54 | 0.95 | 1.07 | 1.12 | 1.15 | 1.09 | 0.97 | 0.86 | 0.71 | 0.59 | 0.50 | 0.45 | 0.45 | 0.46 | 0.51 | 0.55 | 0.61 | 0.72 | 0.79 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $17,157,000K ÷ $32,697,000K
= 0.52
Oneok Inc.'s fixed asset turnover has shown fluctuations over the past eight quarters, ranging from a low of 0.54 to a high of 1.15. The fixed asset turnover ratio indicates the efficiency with which the company utilizes its fixed assets to generate revenue. A higher ratio signifies that the company is generating more revenue per dollar of fixed assets, reflecting better asset utilization.
In the most recent quarter, Q4 2023, the fixed asset turnover ratio was 0.54, which is equivalent to the ratio in Q3 2023. This suggests that Oneok Inc. may not have efficiently used its fixed assets to generate revenue during these periods. However, in Q2 and Q1 2023, the ratio improved to 0.95 and 1.07, respectively, indicating better asset utilization compared to the previous two quarters.
Comparing the current ratios to the same quarters in the previous year, there is a slight decline in the ratio trend. In Q4 2022, the fixed asset turnover was the highest at 1.12, which has gradually decreased to 0.54 in Q4 2023. This decline may raise concerns about the company's operational efficiency in utilizing its fixed assets effectively over the past year.
Overall, Oneok Inc. should closely monitor its fixed asset turnover ratios to ensure optimal asset utilization and strive to improve efficiency in generating revenue from its fixed assets in order to drive sustainable growth and profitability in the future.
Peer comparison
Dec 31, 2023