ONEOK Inc (OKE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 44,266,000 | 24,379,000 | 23,621,600 | 23,078,800 | 21,812,100 |
| Total stockholders’ equity | US$ in thousands | 16,484,000 | 6,494,000 | 6,015,000 | 6,042,400 | 6,225,950 |
| Financial leverage ratio | 2.69 | 3.75 | 3.93 | 3.82 | 3.50 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $44,266,000K ÷ $16,484,000K
= 2.69
The financial leverage ratio of Oneok Inc. has exhibited a fluctuating trend over the past five years. In 2023, the ratio stood at 2.69, which was a notable decrease from the previous year's ratio of 3.75. This declining trend indicates that the company relied less on debt financing in 2023 compared to the prior year.
Looking further back, the financial leverage ratio showed a peak at 3.93 in 2021, followed by slight decreases in 2022 and 2023. Despite the fluctuations, the company's leverage ratio has generally remained above 3 in recent years, indicating that Oneok Inc. has been utilizing a significant amount of debt in its capital structure.
It is essential for investors and stakeholders to monitor the financial leverage ratio carefully, as a high ratio may indicate a higher level of financial risk due to increased debt obligations. In contrast, a lower ratio suggests a more conservative capital structure with a lower reliance on debt financing.
Overall, the recent decrease in Oneok Inc.'s financial leverage ratio in 2023 may signify a shift towards a more balanced capital structure with potentially reduced financial risk compared to previous years.
Peer comparison
Dec 31, 2023