ONEOK Inc (OKE)
Payables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,929,000 | 12,520,870 | 14,494,870 | 16,890,870 | 17,909,870 | 18,336,040 | 17,012,170 | 14,501,150 | 12,256,660 | 9,564,710 | 7,381,250 | 5,954,728 | 5,110,148 | 5,274,398 | 5,423,258 | 6,108,590 | 6,788,040 | 7,314,800 | 8,461,030 | 9,011,060 |
| Payables | US$ in thousands | 1,564,000 | 1,619,000 | 880,000 | 1,074,000 | 1,359,000 | 1,658,900 | 1,923,760 | 1,729,940 | 1,332,390 | 1,442,980 | 1,052,560 | 929,771 | 719,302 | 624,483 | 755,474 | 742,369 | 1,209,900 | 1,129,850 | 907,377 | 1,027,320 |
| Payables turnover | 7.63 | 7.73 | 16.47 | 15.73 | 13.18 | 11.05 | 8.84 | 8.38 | 9.20 | 6.63 | 7.01 | 6.40 | 7.10 | 8.45 | 7.18 | 8.23 | 5.61 | 6.47 | 9.32 | 8.77 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,929,000K ÷ $1,564,000K
= 7.63
Oneok Inc.'s payables turnover ratio has shown variations over the past eight quarters, ranging from 7.63 to 16.47. A higher payables turnover ratio indicates the company is paying off its suppliers more frequently within a given period, which can be a positive indication of efficient cash management and strong vendor relationships.
In the most recent quarter (Q4 2023), the payables turnover ratio decreased slightly to 7.63 compared to the previous quarter, Q3 2023, where it was 7.73. While the decrease may suggest a potential lengthening of the company's payment cycle, the ratio remains relatively stable, indicating that Oneok Inc. is effectively managing its accounts payable.
Comparing the current values to the same quarter in the previous year shows an upward trend in payables turnover, implying that the company is improving its efficiency in settling its payables obligations. The significant increase in the payables turnover ratio from Q2 2023 (16.47) to Q3 2023 (15.73) followed by a slight decrease in Q4 2023 suggests a temporary fluctuation in payment patterns.
Overall, a consistent and healthy payables turnover ratio reflects Oneok Inc.'s ability to effectively manage its accounts payable and maintain positive relationships with its suppliers, which is crucial for sustaining operational activities and financial health. The company should continue to monitor this ratio to ensure it remains within an optimal range, balancing cash flow needs with vendor relationships.
Peer comparison
Dec 31, 2023