ONEOK Inc (OKE)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.48 | 0.52 | 0.54 | 0.62 |
| Debt-to-capital ratio | 0.65 | 0.56 | 0.66 | 0.68 | 0.70 |
| Debt-to-equity ratio | 1.82 | 1.29 | 1.96 | 2.12 | 2.35 |
| Financial leverage ratio | 3.76 | 2.69 | 3.75 | 3.93 | 3.82 |
The solvency ratios of ONEOK Inc demonstrate a positive trend over the years, indicating improved financial strength and stability. The Debt-to-assets ratio has decreased from 0.62 in 2020 to 0.48 in 2024, suggesting that the company has reduced its reliance on debt to finance its assets.
Similarly, the Debt-to-capital ratio has shown a decline from 0.70 in 2020 to 0.65 in 2024, indicating a more favorable capital structure with a lower proportion of debt in relation to total capital.
The Debt-to-equity ratio has also improved significantly, dropping from 2.35 in 2020 to 1.82 in 2024. This reduction signifies a decrease in the company's dependence on debt financing relative to equity.
Furthermore, the Financial leverage ratio has exhibited a declining trend from 3.82 in 2020 to 3.76 in 2024, reflecting a lower level of financial risk and leverage in the company's operations.
Overall, the decreasing trend in these solvency ratios for ONEOK Inc indicates an enhanced financial position and reduced risk of default, portraying a positive outlook for the company's ability to meet its financial obligations and sustain its operations effectively in the future.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 80.47 | 4.70 | 4.15 | 3.54 | 2.13 |
The interest coverage ratio for ONEOK Inc has been showing an improving trend over the past five years. Starting at 2.13 in December 2020, the ratio increased to 3.54 in December 2021, further improving to 4.15 in December 2022, and then to 4.70 in December 2023. However, there was a significant spike in the interest coverage ratio to 80.47 in December 2024, indicating a substantial increase in the company's ability to cover its interest expenses with its operating income. This sharp increase may be attributed to various factors such as improved profitability, lower interest expenses, or higher operating income. Overall, the trend suggests that ONEOK Inc has been effectively managing its interest obligations and strengthening its financial position in recent years.