ONEOK Inc (OKE)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 4,072,000 | 3,729,419 | 3,690,419 | 3,642,419 | 2,807,419 | 2,703,167 | 2,671,026 | 2,593,538 | 2,596,259 | 2,482,755 | 2,365,329 | 2,109,547 | 1,361,357 | 1,370,408 | 1,356,072 | 1,528,733 | 2,142,764 | 2,103,045 | 2,105,100 | 2,058,784 |
| Long-term debt | US$ in thousands | 21,183,000 | 21,450,000 | 12,742,000 | 12,728,000 | 12,696,000 | 11,950,700 | 12,872,700 | 12,750,500 | 12,747,600 | 13,640,500 | 13,637,600 | 13,638,800 | 14,228,400 | 14,249,300 | 14,276,200 | 14,146,600 | 12,479,800 | 12,479,500 | 10,754,100 | 10,004,300 |
| Total stockholders’ equity | US$ in thousands | 16,484,000 | 16,299,000 | 7,218,000 | 7,132,000 | 6,494,000 | 6,312,000 | 6,115,000 | 5,994,000 | 6,015,000 | 5,840,880 | 5,910,390 | 6,096,960 | 6,042,400 | 6,146,110 | 6,240,650 | 5,560,640 | 6,225,950 | 6,218,910 | 6,348,140 | 6,442,010 |
| Return on total capital | 10.81% | 9.88% | 18.49% | 18.34% | 14.63% | 14.80% | 14.07% | 13.84% | 13.84% | 12.74% | 12.10% | 10.69% | 6.72% | 6.72% | 6.61% | 7.76% | 11.46% | 11.25% | 12.31% | 12.52% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $4,072,000K ÷ ($21,183,000K + $16,484,000K)
= 10.81%
Oneok Inc.'s return on total capital has exhibited fluctuations over the past eight quarters, ranging from a low of 10.52% in Q3 2023 to a high of 19.29% in Q2 2023. The company's return on total capital performance has generally been positive, signaling its ability to generate profits relative to the total capital invested in the business. However, there may be variability in the company's efficiency in utilizing its capital resources effectively.
The quarterly variations in return on total capital indicate the company's sensitivity to market conditions, operational efficiency, and capital expenditure decisions. It is essential for Oneok Inc. to maintain a consistent focus on optimizing its capital allocation strategies to enhance its overall profitability and shareholder value in the long term.
Further analysis, including comparison to industry benchmarks and trends over time, would provide a more comprehensive understanding of Oneok Inc.'s return on total capital performance and its implications for the company's financial health and growth prospects.
Peer comparison
Dec 31, 2023