ONEOK Inc (OKE)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,989,000 | 4,072,000 | 2,807,420 | 2,596,260 | 1,515,200 |
| Interest expense | US$ in thousands | 62,000 | 866,000 | 676,000 | 732,924 | 712,886 |
| Interest coverage | 80.47 | 4.70 | 4.15 | 3.54 | 2.13 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,989,000K ÷ $62,000K
= 80.47
The interest coverage ratio for ONEOK Inc has shown a positive trend over the past five years, indicating an increasing ability to cover its interest expenses with operating income.
In December 31, 2020, the interest coverage ratio was 2.13, suggesting that the company's operating income was able to cover its interest expenses roughly two times over.
By December 31, 2021, the interest coverage ratio improved to 3.54, indicating a stronger ability to meet its interest obligations.
The trend continued with the interest coverage ratio increasing to 4.15 by December 31, 2022, and further to 4.70 by December 31, 2023, demonstrating a consistent improvement in the company's ability to service its debt.
Remarkably, by December 31, 2024, the interest coverage ratio surged to an impressive 80.47, indicating a substantial growth in the company's operating income relative to its interest expenses.
Overall, the increasing trend in ONEOK Inc's interest coverage ratio from 2020 to 2024 suggests a strengthening financial position and enhanced ability to meet its debt obligations through operating profits.
Peer comparison
Dec 31, 2024