ONEOK Inc (OKE)
Payables turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 13,311,000 | 11,929,000 | 17,910,000 | 12,256,700 | 5,110,150 |
| Payables | US$ in thousands | 2,187,000 | 1,564,000 | 1,359,000 | 1,332,390 | 719,302 |
| Payables turnover | 6.09 | 7.63 | 13.18 | 9.20 | 7.10 |
December 31, 2024 calculation
Payables turnover = Cost of revenue ÷ Payables
= $13,311,000K ÷ $2,187,000K
= 6.09
The payables turnover ratio measures how many times a company pays off its accounts payable during a specific period. For ONEOK Inc, the payables turnover ratio has shown variations over the years:
1. As of December 31, 2020, the payables turnover ratio was 7.10, indicating that the company paid off its accounts payable approximately 7.10 times during that year.
2. The ratio increased to 9.20 by December 31, 2021, suggesting an improvement in the company's ability to manage its payables efficiently.
3. By December 31, 2022, the payables turnover ratio significantly rose to 13.18, indicating that ONEOK Inc was paying off its accounts payable more frequently during that period.
4. However, there was a slight decline by December 31, 2023, with the payables turnover ratio dropping to 7.63, potentially suggesting a change in the company's payment practices or supplier relationships.
5. By December 31, 2024, the payables turnover ratio decreased further to 6.09, raising potential concerns about the company's liquidity management or relationships with suppliers.
Overall, the trend in ONEOK Inc's payables turnover ratio shows fluctuations, with periods of improvement and decline. It is essential for stakeholders to monitor this ratio closely as it provides insights into the company's efficiency in managing its accounts payable and its relationships with suppliers.
Peer comparison
Dec 31, 2024