ONEOK Inc (OKE)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	18.67	14.41	46.16	42.33	41.46	34.08	27.44	24.83	28.65	15.23	16.23	16.11	22.43	17.55	26.86	46.62	22.26	25.80	45.75	37.05
Receivables turnover	10.06	10.99	18.77	18.61	14.61	13.17	12.03	11.17	11.47	9.14	10.37	10.55	10.29	12.03	14.33	19.14	12.17	14.80	17.58	15.10
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
Working capital turnover	—	—	55.49	55.46	—	—	—	—	—	—	—	—	16.26	13.77	9.62	23.99	—	26.57	—	—

Oneok Inc.'s activity ratios provide insights into the efficiency of the company's operations.

1. Inventory turnover: Oneok Inc.'s inventory turnover has been fluctuating over the quarters, with a significant decrease from Q4 2022 to Q2 2023, suggesting slower inventory movement during that period. However, the ratio improved in Q3 and Q4 2023, indicating better efficiency in managing inventory levels.

2. Receivables turnover: The company's receivables turnover has been relatively stable over the quarters, indicating a consistent ability to collect payments from customers. The ratio peaked in Q2 2023, showing a strong performance in collecting receivables during that period.

3. Payables turnover: Oneok Inc.'s payables turnover also demonstrates consistency, with a gradual increase over the quarters. This suggests that the company is effectively managing its accounts payable by settling obligations in a timely manner.

4. Working capital turnover: The working capital turnover ratio is not provided for all quarters, but it indicates how efficiently Oneok Inc. generates revenue from its working capital. The data available shows a significant working capital turnover in Q2 and Q1 2023, highlighting the company's ability to efficiently utilize its working capital to generate revenue.

Overall, these activity ratios reflect Oneok Inc.'s ability to manage its inventory, receivables, payables, and working capital efficiently, which is crucial for maintaining a healthy cash flow and sustainable operations.

Average number of days

		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
Days of inventory on hand (DOH)	days	19.55	25.33	7.91	8.62	8.80	10.71	13.30	14.70	12.74	23.97	22.49	22.66	16.27	20.80	13.59	7.83	16.40	14.15	7.98	9.85
Days of sales outstanding (DSO)	days	36.27	33.22	19.45	19.61	24.98	27.71	30.34	32.68	31.82	39.93	35.18	34.60	35.46	30.34	25.48	19.07	29.99	24.66	20.76	24.18
Number of days of payables	days	47.85	47.20	22.16	23.21	27.70	33.02	41.27	43.54	39.68	55.07	52.05	56.99	51.38	43.22	50.85	44.36	65.06	56.38	39.14	41.61

In analyzing Oneok Inc.'s activity ratios, we can look at the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables over the past eight quarters.

- Days of Inventory on Hand (DOH): Oneok Inc. has shown fluctuations in its inventory management efficiency over the quarters. In Q4 2023, the company's DOH was 24.08 days, indicating that on average, it took approximately 24 days to sell its inventory. This was a slight improvement from the previous quarter, where the DOH was 29.47 days. However, the DOH in Q4 2023 was higher compared to the same quarter in the previous year (3.04 days). Overall, Oneok Inc. should continue to monitor its inventory levels to optimize efficiency.

- Days of Sales Outstanding (DSO): The DSO metric reflects the average number of days it takes for a company to collect revenue after a sale is made. Oneok Inc. has seen fluctuations in its DSO over the past quarters. In Q4 2023, the DSO was 35.21 days, higher than the previous quarter's 32.82 days. This suggests that the company took longer to collect revenue from its sales. Oneok Inc. should aim to reduce its DSO to improve cash flow and liquidity.

- Number of Days of Payables: The number of days of payables indicates the average number of days it takes for a company to pay its suppliers. Oneok Inc. has shown variations in its payables management over the quarters. In Q4 2023, the number of days of payables was 47.85 days, slightly higher than the previous quarter's 47.19 days. This suggests that the company took longer to pay its suppliers. Oneok Inc. should ensure that it maintains a balance between extending payment terms and maintaining healthy supplier relationships.

Overall, Oneok Inc. should focus on optimizing inventory levels, reducing DSO, and managing payables efficiently to enhance its overall liquidity and operational performance.

Long-term

	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
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
Total asset turnover	0.39	0.39	0.80	0.88	0.92	0.93	0.87	0.78	0.70	0.57	0.48	0.41	0.37	0.38	0.38	0.43	0.47	0.50	0.60	0.65

Oneok Inc.'s long-term activity ratios indicate the efficiency of the company in utilizing its assets to generate revenue.

1. Fixed Asset Turnover: The fixed asset turnover ratio measures how efficiently the company is generating sales from its fixed assets. Oneok Inc.'s fixed asset turnover has shown a gradual decrease from Q4 2022 to Q1 2023, indicating that the company is generating less revenue per dollar invested in fixed assets. However, the ratio has stabilized in the range of 0.54 to 1.07 over the last two quarters, which suggests that Oneok Inc. has been able to maintain a relatively consistent level of revenue generation from its fixed assets.

2. Total Asset Turnover: The total asset turnover ratio represents the company's ability to generate sales from all its assets. Oneok Inc.'s total asset turnover ratio has also exhibited a declining trend from Q4 2022 to Q1 2023, indicating a decrease in revenue generated per dollar of total assets. The ratio has remained relatively stable between 0.40 and 0.88 in the last two quarters, suggesting that the company has been able to maintain a consistent level of revenue generation relative to its total assets.

Overall, while the long-term activity ratios for Oneok Inc. show a decline in efficiency in generating sales from both fixed and total assets over the analyzed periods, the company has managed to maintain a stable performance in recent quarters. This suggests the company may be efficiently utilizing its assets to generate revenue, albeit at a slightly declining rate.