ONEOK Inc (OKE)

Liquidity 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
Current ratio 0.90 0.97 1.23 1.18 0.84 0.67 0.83 0.76 0.75 0.95 0.93 0.98 1.39 1.57 1.71 1.36 0.73 1.26 0.81 0.79
Quick ratio 0.59 0.56 0.76 0.84 0.57 0.44 0.53 0.49 0.50 0.90 0.95 1.04 1.61 1.79 1.22 0.94 0.42 0.89 0.54 0.50
Cash ratio 0.10 0.09 0.08 0.31 0.07 0.02 0.04 0.00 0.05 0.36 0.49 0.59 0.99 1.13 0.74 0.49 0.01 0.43 0.16 0.02

Oneok Inc.'s liquidity ratios indicate its ability to meet its short-term obligations. The current ratio, which measures the company's ability to cover current liabilities with current assets, has shown fluctuation over the past eight quarters ranging from 0.67 to 1.23. While a ratio above 1 indicates a strong position, Oneok's current ratio has been inconsistent, with a recent decrease in Q4 2023 compared to the previous quarter.

The quick ratio, which provides a more stringent measure by excluding inventory from current assets, also exhibits variability. Oneok's quick ratio has ranged from 0.63 to 1.13 in the same period. Despite some fluctuations, the quick ratio generally aligns with the current ratio trends, indicating the company may have some challenges in quickly covering obligations without relying on inventory.

Furthermore, the cash ratio, which measures the company's capacity to cover current liabilities with cash and cash equivalents, has shown similar variability, ranging from 0.18 to 0.58. In the most recent quarter, the cash ratio decreased to 0.18, potentially signaling a lower ability to cover short-term obligations solely from cash on hand.

Overall, the liquidity ratios of Oneok Inc. suggest that the company may face challenges in meeting its short-term obligations with existing assets and cash reserves consistently. It is essential for the company to closely monitor its liquidity position and take appropriate measures to ensure it can meet its financial commitments as they come due.

See also:

ONEOK Inc Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 7.97 11.36 5.20 5.02 6.09 5.40 2.37 3.84 4.88 8.83 5.62 0.26 0.35 7.93 -11.78 -17.45 -18.67 -17.57 -10.41 -7.58

The cash conversion cycle of Oneok Inc. has shown fluctuations over the past eight quarters, indicating varying efficiency in managing its working capital. In Q4 2023, the company's cash conversion cycle was 11.43 days, representing the time it takes for Oneok Inc. to convert its investments in inventory and other resources into cash flows from sales. Compared to the previous quarter, there was a slight improvement in efficiency, as the cycle decreased from 15.09 days in Q3 2023.

Q2 2023 had a notably low cash conversion cycle of 0.97 days, indicating that the company was able to quickly convert its investments into cash during that period. This was a significant improvement compared to the negative cycle in Q1 2023, where Oneok Inc. was able to pay its suppliers earlier than receiving payments from customers.

Overall, the positive cash conversion cycle values in recent quarters suggest that Oneok Inc. has been managing its working capital effectively, while the negative values in some periods indicate potential opportunities for further optimization in the company's cash flow management strategies. It is important for Oneok Inc. to monitor and improve its cash conversion cycle to ensure efficient use of its resources and maintain financial stability.