ONEOK Inc (OKE)
Payables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,929,000 | 17,910,000 | 12,256,700 | 5,110,150 | 6,788,040 |
| Payables | US$ in thousands | 1,564,000 | 1,359,000 | 1,332,390 | 719,302 | 1,209,900 |
| Payables turnover | 7.63 | 13.18 | 9.20 | 7.10 | 5.61 |
December 31, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,929,000K ÷ $1,564,000K
= 7.63
Oneok Inc.'s payables turnover ratio has fluctuated over the past five years. The payables turnover ratio decreased from 5.61 in 2019 to 7.10 in 2020, before increasing to 9.20 in 2021. It further increased to 13.17 in 2022, signaling a significant improvement in the company's ability to manage its payables. However, there was a slight decrease to 7.63 in 2023.
A higher payables turnover ratio indicates that Oneok Inc. is paying its suppliers more frequently, potentially taking advantage of early payment discounts or effectively managing its working capital. Conversely, a lower ratio might suggest slower payments to suppliers or a less efficient use of cash resources.
Overall, while the payables turnover ratio of Oneok Inc. has shown variability, the company has generally demonstrated the ability to effectively manage its accounts payable, potentially benefiting from improved supplier relationships and cash flow management strategies.
Peer comparison
Dec 31, 2023