ONEOK Inc (OKE)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,989,000 | 4,072,000 | 2,807,420 | 2,596,260 | 1,515,200 |
| Long-term debt | US$ in thousands | 31,018,000 | 21,183,000 | 12,696,000 | 12,747,600 | 14,228,400 |
| Total stockholders’ equity | US$ in thousands | 17,036,000 | 16,484,000 | 6,494,000 | 6,015,000 | 6,042,400 |
| Return on total capital | 10.38% | 10.81% | 14.63% | 13.84% | 7.47% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $4,989,000K ÷ ($31,018,000K + $17,036,000K)
= 10.38%
ONEOK Inc's return on total capital has shown a generally positive trend over the years. The ratio increased from 7.47% in December 31, 2020, to 14.63% in December 31, 2022, indicating an improvement in the company's ability to generate returns from both debt and equity capital investments. However, there was a slight dip in the ratio to 10.81% in December 31, 2023, followed by a further decrease to 10.38% by December 31, 2024.
Despite the fluctuations in the later years, ONEOK Inc has maintained a return on total capital above its initial benchmark in 2020. The company's ability to effectively utilize its total capital resources to generate returns is crucial for sustainable growth and profitability in the long term. Monitoring this ratio over time can provide insights into the company's operational efficiency and capital allocation strategies.
Peer comparison
Dec 31, 2024