ONEOK Inc (OKE)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.48 | 0.49 | 0.53 | 0.52 | 0.52 | 0.49 | 0.52 | 0.53 | 0.54 | 0.57 | 0.58 | 0.59 | 0.62 | 0.63 | 0.62 | 0.64 | 0.57 | 0.58 | 0.54 | 0.53 |
| Debt-to-capital ratio | 0.56 | 0.57 | 0.64 | 0.64 | 0.66 | 0.65 | 0.68 | 0.68 | 0.68 | 0.70 | 0.70 | 0.69 | 0.70 | 0.70 | 0.70 | 0.72 | 0.67 | 0.67 | 0.63 | 0.61 |
| Debt-to-equity ratio | 1.29 | 1.32 | 1.77 | 1.78 | 1.96 | 1.89 | 2.11 | 2.13 | 2.12 | 2.34 | 2.31 | 2.24 | 2.35 | 2.32 | 2.29 | 2.54 | 2.00 | 2.01 | 1.69 | 1.55 |
| Financial leverage ratio | 2.69 | 2.70 | 3.33 | 3.43 | 3.75 | 3.87 | 4.01 | 4.00 | 3.93 | 4.09 | 3.97 | 3.80 | 3.82 | 3.71 | 3.68 | 3.95 | 3.50 | 3.43 | 3.11 | 2.94 |
Oneok Inc.'s solvency ratios indicate the extent to which the company relies on debt to finance its operations and the ability to meet its financial obligations.
The debt-to-assets ratio has shown a slight fluctuation over the periods, ranging from 0.49 to 0.57. This ratio suggests that between 49% to 57% of Oneok's assets are funded by debt, indicating a moderate level of leverage.
The debt-to-capital and debt-to-equity ratios provide a similar insight into the company's capital structure. The debt-to-capital ratio ranges from 0.57 to 0.70, indicating that between 57% to 70% of Oneok's capital is financed through debt. The debt-to-equity ratio ranges from 1.31 to 2.29, showing that for every dollar of equity, the company has between $1.31 to $2.29 in debt. These ratios demonstrate a significant reliance on debt for capital funding over the periods.
The financial leverage ratio, which measures the company's total assets relative to equity, ranges from 2.69 to 4.00. This indicates that Oneok's assets are leveraged between 2.69 to 4 times by its equity, signifying a relatively high level of financial leverage.
Overall, the solvency ratios of Oneok Inc. show a consistent pattern of utilizing a considerable amount of debt in its capital structure, which may imply higher financial risk and interest cost. Investors and creditors need to monitor these ratios to assess the company's ability to manage its debt obligations effectively.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Oneok Inc.'s interest coverage ratio has shown a consistent upward trend over the past four quarters, indicating the company's improved ability to meet its interest obligations using its earnings before interest and taxes (EBIT). The interest coverage ratio has increased steadily from 3.78 in Q1 2022 to 5.12 in Q4 2023. This indicates that Oneok Inc. is generating significantly more income relative to its interest expenses, providing a buffer to cover interest payments.
The interest coverage ratio exceeding 1 implies that the company is generating enough operating income to cover its interest expenses, which is a positive sign for creditors and investors. The consistent increase in the ratio reflects the company's improved financial health and reduced risk of financial distress due to interest payment obligations.
Overall, Oneok Inc.'s interest coverage ratio has shown a strong performance over the past quarters, portraying the company's ability to comfortably meet its interest obligations and suggesting a stable financial position.