ONEOK Inc (OKE)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.52 | 0.54 | 0.62 | 0.57 |
| Debt-to-capital ratio | 0.56 | 0.66 | 0.68 | 0.70 | 0.67 |
| Debt-to-equity ratio | 1.29 | 1.96 | 2.12 | 2.35 | 2.00 |
| Financial leverage ratio | 2.69 | 3.75 | 3.93 | 3.82 | 3.50 |
Oneok Inc.'s solvency ratios indicate the company's ability to meet its long-term debt obligations and financial leverage over the past five years.
The debt-to-assets ratio has decreased from 0.62 in 2020 to 0.49 in 2023, indicating that the company has reduced its dependency on debt to finance its assets and has a stronger asset base to cover its liabilities.
The debt-to-capital ratio has also shown a decreasing trend, declining from 0.70 in 2020 to 0.57 in 2023, suggesting that Oneok Inc. has improved its capital structure by relying less on debt and more on equity financing.
The debt-to-equity ratio has fluctuated over the years but has shown an overall decreasing trend. It has decreased from 2.36 in 2020 to 1.31 in 2023, indicating that the company has reduced its reliance on debt to finance its operations and has strengthened its equity position.
The financial leverage ratio has also improved over the years, declining from 3.82 in 2020 to 2.69 in 2023. This indicates that the company has reduced its financial risk by decreasing its reliance on debt for its operations.
Overall, Oneok Inc.'s solvency ratios reflect a positive trend, showing an improvement in the company's ability to manage its debt levels and financial leverage, which may contribute to its long-term financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 4.70 | 4.15 | 3.54 | 2.13 | 4.36 |
Oneok Inc.'s interest coverage ratio has shown a positive trend over the past five years, indicating the company's ability to meet its interest obligations with its earnings. The interest coverage ratio increased from 4.21 in 2019 to 5.12 in 2023, showing consistent improvement in the company's ability to cover its interest expenses. This trend suggests that Oneok Inc. has been generating sufficient earnings to comfortably meet its interest payments, reflecting positively on the company's financial stability and ability to manage its debt obligations. The increasing trend in the interest coverage ratio is a favorable indicator for investors and creditors, as it signifies a lower financial risk associated with the company's debt repayment capacity.