ONEOK Inc (OKE)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 29.04% | 20.00% | 25.90% | 40.18% | 33.22% |
| Operating profit margin | 24.22% | 12.54% | 15.70% | 15.94% | 18.83% |
| Pretax margin | 20.80% | 10.05% | 12.00% | 9.39% | 16.24% |
| Net profit margin | 15.82% | 7.69% | 9.07% | 7.17% | 12.58% |
Oneok Inc.'s profitability ratios have shown fluctuations over the past five years.
- Gross profit margin: Oneok's gross profit margin has varied, with a significant decrease in 2022 followed by an increase in 2023. The company's ability to generate revenue after accounting for the cost of goods sold has improved, indicating better cost management or possibly an increase in revenues.
- Operating profit margin: The operating profit margin has also seen fluctuations, although it has generally trended upwards. This suggests that Oneok has been able to control its operating expenses effectively, leading to higher operating profitability.
- Pretax margin: Oneok's pretax margin has shown volatility, with a notable increase in 2023 compared to the previous years. This may indicate improved operational efficiency or better management of non-operating expenses impacting the pre-tax profitability of the company.
- Net profit margin: The net profit margin of Oneok has also displayed variability, with a substantial increase in 2023. The company's ability to convert revenue into net income has improved, possibly due to better cost control measures or increased revenue relative to expenses.
Overall, despite the fluctuations in profitability ratios, Oneok Inc. has shown trends of improvement in its ability to generate profits, manage costs, and convert revenue into bottom-line net income over the years. Monitoring these ratios can provide valuable insights into the company's financial health and performance.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 9.20% | 11.51% | 10.99% | 5.90% | 8.78% |
| Return on assets (ROA) | 6.01% | 7.06% | 6.35% | 2.66% | 5.86% |
| Return on total capital | 10.81% | 14.63% | 13.84% | 7.47% | 11.46% |
| Return on equity (ROE) | 16.13% | 26.52% | 24.93% | 10.14% | 20.54% |
Oneok Inc.'s profitability ratios indicate the company's ability to generate profits relative to its assets, capital, and equity over the past five years.
1. Operating return on assets (Operating ROA):
The Operating ROA has shown a fluctuating trend, ranging from 7.78% in 2023 to 8.79% in 2019. This ratio measures how efficiently the company is utilizing its assets to generate operating profits.
2. Return on assets (ROA):
Oneok's ROA has varied from 2.65% in 2020 to 7.06% in 2022. This ratio assesses the company's overall profitability by evaluating its ability to generate earnings from its total assets.
3. Return on total capital:
The Return on Total Capital has fluctuated between 10.41% in 2020 and 14.69% in 2022. This ratio reflects the company's profitability from all sources of capital, including debt and equity.
4. Return on equity (ROE):
Oneok's ROE has ranged from 10.12% in 2021 to 26.50% in 2022. This ratio evaluates the company's ability to generate profits from shareholders' equity, indicating how effectively it is utilizing equity investments to generate returns for shareholders.
Overall, the profitability ratios of Oneok Inc. demonstrate varying levels of effectiveness in generating profits from its assets, capital, and equity over the past five years, with some years showing improvement in profitability metrics compared to others.