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

Company name
Symbol
Fixed asset turnover
ONEOK Inc
OKE
0.52
Chesapeake Utilities Corporation
CPK
0.27
Southwest Gas Holdings Inc
SWX

See also:

ONEOK Inc Net Fixed Asset Turnover (Quarterly Data)