ONEOK Inc (OKE)
Liquidity ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 0.90 | 0.81 | 0.62 | 0.70 | 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 |
| Quick ratio | 0.65 | 0.51 | 0.34 | 0.42 | 0.59 | 0.56 | 0.76 | 0.84 | 0.57 | 0.44 | 0.53 | 0.49 | 0.50 | 0.90 | 0.95 | 0.64 | 1.61 | 1.79 | 1.22 | 0.94 |
| Cash ratio | 0.16 | 0.16 | 0.01 | 0.02 | 0.10 | 0.09 | 0.08 | 0.31 | 0.07 | 0.02 | 0.04 | 0.01 | 0.05 | 0.36 | 0.49 | 0.20 | 0.99 | 1.13 | 0.74 | 0.49 |
The current ratio of ONEOK Inc, a measure of its short-term liquidity, fluctuated over the period under consideration. It ranged from a high of 1.71 in June 2020 to a low of 0.67 in September 2022, with a decreasing trend towards the end of the period. The ratio indicates the company's ability to cover its short-term obligations with its current assets.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, also showed variability over the years. It peaked at 1.79 in September 2020 but declined to 0.51 by September 2024. This indicates a potential decrease in the company's ability to meet its short-term liabilities without relying on the sale of inventory.
The cash ratio of ONEOK Inc, a more stringent liquidity measure that considers only cash and cash equivalents to cover current liabilities, displayed significant fluctuations. The ratio ranged from 1.13 in September 2020 to 0.01 in June 2024, implying a notable variation in the company's ability to pay off its short-term obligations solely with cash.
Overall, the liquidity ratios of ONEOK Inc signal fluctuations in its short-term liquidity position over the years, with varying implications for the company's ability to meet its current financial obligations.
See also:
Additional liquidity measure
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | -0.20 | 4.63 | 8.14 | 14.54 | 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 |
The cash conversion cycle of ONEOK Inc has exhibited some fluctuation over the analyzed periods. Starting from negative figures in early 2020, indicating efficient cash utilization, the company gradually transitioned to positive values by the end of the same year and into 2021. This shift suggested a longer cycle of converting inventory into cash during this period. From 2021 to mid-2022, the cash conversion cycle fluctuated around single-digit positive days, signifying continued working capital management challenges.
In the latter half of 2022, there was a notable improvement, with the company reducing its cash conversion cycle to around 2-6 days. This optimization reflected a more streamlined process of converting inventory into receivables and finally into cash, potentially indicating enhanced operational efficiency and better liquidity management. However, by the end of 2023 and into the first half of 2024, the cash conversion cycle increased significantly, surpassing double-digit figures. This upsurge might point to increased time taken to convert goods into cash or potential challenges in managing working capital effectively.
By the end of 2024, the cash conversion cycle for ONEOK Inc turned negative, implying a reversal to more efficient cash utilization. This upbeat trend could suggest improvements in inventory turnover, accounts receivable collection, and payment of accounts payable, leading to faster cash cycles. Overall, the analysis of the cash conversion cycle highlights fluctuations in the efficiency of ONEOK Inc's working capital management over the examined periods.