ONEOK Inc (OKE)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 21,183,000 | 12,696,000 | 12,747,600 | 14,228,400 | 12,479,800 |
| Total stockholders’ equity | US$ in thousands | 16,484,000 | 6,494,000 | 6,015,000 | 6,042,400 | 6,225,950 |
| Debt-to-capital ratio | 0.56 | 0.66 | 0.68 | 0.70 | 0.67 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $21,183,000K ÷ ($21,183,000K + $16,484,000K)
= 0.56
The debt-to-capital ratio of Oneok Inc. has shown a fluctuating trend over the past five years. In 2023, the ratio decreased to 0.57 from 0.68 in 2022, indicating a lower reliance on debt to finance its operations relative to its total capital structure. This could suggest improved financial health and lower financial risk.
Comparing with the previous years, the ratio was also lower than the figures recorded in 2021, 2020, and 2019, which were 0.69, 0.70, and 0.67 respectively. This trend might indicate a strategic shift towards reducing debt levels or increasing equity financing, which could enhance the company's financial stability and flexibility.
Overall, the decreasing trend in the debt-to-capital ratio for Oneok Inc. signifies a positive development in its capital structure and financial leverage, potentially leading to improved financial performance and risk management in the future.
Peer comparison
Dec 31, 2023