ONEOK Inc (OKE)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Debt-to-capital ratio | 0.65 | 0.56 | 0.66 | 0.68 | 0.70 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $31,018,000K ÷ ($31,018,000K + $17,036,000K)
= 0.65
The debt-to-capital ratio of ONEOK Inc has shown a gradually decreasing trend over the past five years. Starting at 0.70 as of December 31, 2020, the ratio decreased to 0.68 by the end of 2021, further declining to 0.66 in 2022, and reaching 0.56 by the end of 2023. However, there was a slight uptick in the ratio to 0.65 as of December 31, 2024.
This indicates that ONEOK Inc has been effectively managing its debt levels in relation to its total capital structure over the years. The decreasing trend suggests the company has been either paying down its debt or increasing its equity base. The slight increase in the ratio in 2024 may indicate a shift in the company's capital structure or a new debt issuance.
Overall, a decreasing debt-to-capital ratio is generally viewed positively as it indicates a lower reliance on debt financing and a stronger financial position. However, it is important to consider the optimal debt levels based on the company's risk profile and growth prospects.
Peer comparison
Dec 31, 2024