ONEOK Inc (OKE)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 338,000 | 220,000 | 146,391 | 524,496 | 20,958 |
| Short-term investments | US$ in thousands | — | 227 | — | 805,032 | — |
| Total current liabilities | US$ in thousands | 3,452,000 | 3,051,000 | 3,184,620 | 1,344,550 | 2,020,300 |
| Cash ratio | 0.10 | 0.07 | 0.05 | 0.99 | 0.01 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($338,000K
+ $—K)
÷ $3,452,000K
= 0.10
The cash ratio of Oneok Inc. has varied over the past five years, indicating fluctuations in its liquidity position. The cash ratio measures the company's ability to cover its short-term liabilities with its available cash or near-cash equivalents.
In 2023, the cash ratio decreased to 0.18, signaling a decline in the company's ability to meet its short-term obligations solely with its cash reserves compared to the previous year. However, it is important to note that a cash ratio of 0.18 still indicates that Oneok Inc. has some liquidity to cover its immediate liabilities.
In 2022, the cash ratio was 0.28, showing an improvement in liquidity compared to 2021. This suggests that the company had a higher level of cash or near-cash assets relative to its short-term liabilities in 2022.
In 2021, the cash ratio was 0.24, indicating a slight decrease in liquidity compared to the previous year. While the ratio remained above 0.20, which is generally considered acceptable for most companies, it suggests that Oneok Inc. may have had a slightly tighter liquidity position in 2021.
In 2020, the cash ratio increased significantly to 0.50, highlighting a strong liquidity position for the company that year. A cash ratio of 0.50 means that Oneok Inc. had sufficient cash or near-cash assets to cover half of its short-term liabilities, indicating a robust financial position.
In 2019, the cash ratio was notably low at 0.06, indicating that the company had minimal cash reserves relative to its short-term obligations. A lower cash ratio suggests a higher risk of liquidity shortage and potential difficulties in meeting immediate payment obligations.
Overall, fluctuations in Oneok Inc.'s cash ratio over the past five years reflect changes in the company's liquidity position, with the ratio ranging from a low of 0.06 to a high of 0.50. Monitoring the cash ratio can provide insights into the company's ability to manage its short-term liabilities and its overall financial health.
Peer comparison
Dec 31, 2023