ONEOK Inc (OKE)
Debt-to-equity 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-equity ratio | 1.29 | 1.96 | 2.12 | 2.35 | 2.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $21,183,000K ÷ $16,484,000K
= 1.29
The debt-to-equity ratio of Oneok Inc. has shown a decreasing trend over the last five years, declining from 2.05 in 2019 to 1.31 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments in relation to equity. A lower debt-to-equity ratio generally suggests a more conservative financial structure and may signify a lower risk of financial distress.
In 2023, the debt-to-equity ratio stands at 1.31, indicating that for every dollar of equity, the company has $1.31 in debt. This suggests a moderate level of leverage in the company's capital structure. With the decreasing trend in the ratio, it appears that Oneok Inc. has been actively managing its debt levels relative to equity, potentially improving its financial stability and risk profile.
It is important to note that the optimal debt-to-equity ratio can vary by industry and company circumstances, and it is crucial for investors and stakeholders to consider other financial metrics and qualitative factors when evaluating the overall financial health and performance of Oneok Inc.
Peer comparison
Dec 31, 2023