ONEOK Inc (OKE)

Interest coverage

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 4,072,000 3,729,419 3,690,419 3,642,419 2,807,419 2,703,167 2,671,026 2,593,538 2,596,259 2,482,755 2,365,329 2,109,547 1,361,357 1,370,408 1,356,072 1,528,733 2,142,764 2,103,045 2,105,100 2,058,784
Interest expense (ttm) US$ in thousands 866,000 726,946 678,946 669,946 675,946 688,395 705,444 719,401 732,924 731,460 723,782 757,793 712,886 665,238 618,444 516,969 491,773 480,979 473,312 469,315
Interest coverage 4.70 5.13 5.44 5.44 4.15 3.93 3.79 3.61 3.54 3.39 3.27 2.78 1.91 2.06 2.19 2.96 4.36 4.37 4.45 4.39

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,072,000K ÷ $866,000K
= 4.70

Oneok Inc.'s interest coverage ratio has exhibited a generally positive trend over the past eight quarters. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.

In the latest quarter of Q4 2023, the interest coverage ratio stood at 5.12, indicating that the company generated earnings 5.12 times its interest expense, which suggests a healthy financial position.

Comparing across quarters, the interest coverage ratio has shown consistent improvements since Q1 2022, where it was at 3.78. This upward trend signifies that Oneok Inc. has been able to generate more earnings relative to its interest expenses over time.

The trend of increasing interest coverage ratios is a positive indication of the company's financial strength and ability to service its debt obligations. However, it is important for investors and creditors to continue monitoring this ratio to ensure that Oneok Inc. maintains its ability to cover its interest payments in the future.


Peer comparison

Dec 31, 2023

Company name
Symbol
Interest coverage
ONEOK Inc
OKE
4.70
Chesapeake Utilities Corporation
CPK
4.12
Southwest Gas Holdings Inc
SWX
1.66

See also:

ONEOK Inc Interest Coverage (Quarterly Data)