ONEOK Inc (OKE)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,072,000 | 2,807,420 | 2,596,260 | 1,515,200 | 2,142,760 |
| Interest expense | US$ in thousands | 866,000 | 676,000 | 732,924 | 712,886 | 491,773 |
| Interest coverage | 4.70 | 4.15 | 3.54 | 2.13 | 4.36 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,072,000K ÷ $866,000K
= 4.70
The interest coverage ratio for Oneok Inc. has shown a positive and improving trend over the past five years. The ratio increased from 4.21 in 2019 to 5.12 in 2023, indicating that the company's ability to cover its interest payments with operating income has strengthened over time. This improvement suggests that Oneok Inc. has been generating sufficient earnings to comfortably meet its interest obligations, reflecting a favorable financial position and reduced risk of default on debt. Continuous monitoring of this ratio will be important to ensure the company's continued ability to service its debt effectively.
Peer comparison
Dec 31, 2023