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