Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
ONEOK Inc., solvency ratios
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ONEOK Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ONEOK Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ONEOK Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ONEOK Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ONEOK Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ONEOK Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ONEOK Inc. financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ONEOK Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ONEOK Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
ONEOK Inc., debt to equity calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 2.10 | 2.27 | 2.36 | 2.05 | 1.43 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Chevron Corp. | 0.15 | 0.23 | 0.34 | — | — | |
| ConocoPhillips | 0.35 | 0.44 | 0.51 | — | — | |
| Exxon Mobil Corp. | 0.21 | 0.28 | 0.43 | — | — | |
| Occidental Petroleum Corp. | 0.66 | 1.46 | 1.95 | — | — | |
| Debt to Equity, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.23 | 0.34 | 0.48 | — | — | |
| Debt to Equity, Industry | ||||||
| Energy | 0.25 | 0.37 | 0.52 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity = Total debt ÷ Total ONEOK shareholders’ equity
= 13,643,087 ÷ 6,493,885 = 2.10
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | ONEOK Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
ONEOK Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Current operating lease liability | 12,289) | 13,783) | 13,610) | 1,883) | —) | |
| Noncurrent operating lease liability | 68,110) | 75,636) | 87,610) | 13,509) | —) | |
| Total debt (including operating lease liability) | 13,723,486) | 13,756,535) | 14,361,587) | 12,749,044) | 9,408,993) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 2.11 | 2.29 | 2.38 | 2.05 | 1.43 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.17 | 0.25 | 0.37 | — | — | |
| ConocoPhillips | 0.36 | 0.45 | 0.54 | — | — | |
| Exxon Mobil Corp. | 0.24 | 0.31 | 0.46 | — | — | |
| Occidental Petroleum Corp. | 0.69 | 1.49 | 2.01 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.26 | 0.37 | 0.52 | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Energy | 0.28 | 0.40 | 0.55 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total ONEOK shareholders’ equity
= 13,723,486 ÷ 6,493,885 = 2.11
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | ONEOK Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
ONEOK Inc., debt to capital calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Total capital | 20,136,972) | 19,682,279) | 20,302,765) | 18,959,603) | 15,988,536) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.68 | 0.69 | 0.70 | 0.67 | 0.59 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Chevron Corp. | 0.13 | 0.18 | 0.25 | — | — | |
| ConocoPhillips | 0.26 | 0.31 | 0.34 | — | — | |
| Exxon Mobil Corp. | 0.17 | 0.22 | 0.30 | — | — | |
| Occidental Petroleum Corp. | 0.40 | 0.59 | 0.66 | — | — | |
| Debt to Capital, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.19 | 0.26 | 0.33 | — | — | |
| Debt to Capital, Industry | ||||||
| Energy | 0.20 | 0.27 | 0.34 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 13,643,087 ÷ 20,136,972 = 0.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | ONEOK Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
ONEOK Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Current operating lease liability | 12,289) | 13,783) | 13,610) | 1,883) | —) | |
| Noncurrent operating lease liability | 68,110) | 75,636) | 87,610) | 13,509) | —) | |
| Total debt (including operating lease liability) | 13,723,486) | 13,756,535) | 14,361,587) | 12,749,044) | 9,408,993) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Total capital (including operating lease liability) | 20,217,371) | 19,771,698) | 20,403,985) | 18,974,995) | 15,988,536) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.68 | 0.70 | 0.70 | 0.67 | 0.59 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.15 | 0.20 | 0.27 | — | — | |
| ConocoPhillips | 0.26 | 0.31 | 0.35 | — | — | |
| Exxon Mobil Corp. | 0.19 | 0.24 | 0.32 | — | — | |
| Occidental Petroleum Corp. | 0.41 | 0.60 | 0.67 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.21 | 0.27 | 0.34 | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Energy | 0.22 | 0.28 | 0.36 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 13,723,486 ÷ 20,217,371 = 0.68
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | ONEOK Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
ONEOK Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Total assets | 24,379,094) | 23,621,613) | 23,078,754) | 21,812,121) | 18,231,671) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.56 | 0.58 | 0.62 | 0.58 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Chevron Corp. | 0.09 | 0.13 | 0.18 | — | — | |
| ConocoPhillips | 0.18 | 0.22 | 0.25 | — | — | |
| Exxon Mobil Corp. | 0.11 | 0.14 | 0.20 | — | — | |
| Occidental Petroleum Corp. | 0.27 | 0.39 | 0.45 | — | — | |
| Debt to Assets, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.13 | 0.17 | 0.23 | — | — | |
| Debt to Assets, Industry | ||||||
| Energy | 0.14 | 0.18 | 0.24 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= 13,643,087 ÷ 24,379,094 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | ONEOK Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
ONEOK Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Current maturities of long-term debt | 925,000) | 895,814) | 7,650) | 7,650) | 507,650) | |
| Short-term borrowings | —) | —) | —) | 220,000) | —) | |
| Current finance lease liability | 2,954) | 2,584) | 2,153) | 1,949) | 1,765) | |
| Long-term debt, excluding current maturities | 12,695,834) | 12,747,636) | 14,228,421) | 12,479,757) | 8,873,334) | |
| Noncurrent finance lease liability | 19,299) | 21,082) | 22,143) | 24,296) | 26,244) | |
| Total debt | 13,643,087) | 13,667,116) | 14,260,367) | 12,733,652) | 9,408,993) | |
| Current operating lease liability | 12,289) | 13,783) | 13,610) | 1,883) | —) | |
| Noncurrent operating lease liability | 68,110) | 75,636) | 87,610) | 13,509) | —) | |
| Total debt (including operating lease liability) | 13,723,486) | 13,756,535) | 14,361,587) | 12,749,044) | 9,408,993) | |
| Total assets | 24,379,094) | 23,621,613) | 23,078,754) | 21,812,121) | 18,231,671) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.56 | 0.58 | 0.62 | 0.58 | 0.52 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Chevron Corp. | 0.11 | 0.15 | 0.20 | — | — | |
| ConocoPhillips | 0.18 | 0.23 | 0.26 | — | — | |
| Exxon Mobil Corp. | 0.13 | 0.16 | 0.22 | — | — | |
| Occidental Petroleum Corp. | 0.29 | 0.40 | 0.47 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.14 | 0.19 | 0.24 | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Energy | 0.15 | 0.20 | 0.25 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 13,723,486 ÷ 24,379,094 = 0.56
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | ONEOK Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
ONEOK Inc., financial leverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total assets | 24,379,094) | 23,621,613) | 23,078,754) | 21,812,121) | 18,231,671) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 3.75 | 3.93 | 3.82 | 3.50 | 2.77 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Chevron Corp. | 1.62 | 1.72 | 1.82 | — | — | |
| ConocoPhillips | 1.95 | 2.00 | 2.10 | — | — | |
| Exxon Mobil Corp. | 1.89 | 2.01 | 2.12 | — | — | |
| Occidental Petroleum Corp. | 2.41 | 3.69 | 4.31 | — | — | |
| Financial Leverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.83 | 1.99 | 2.12 | — | — | |
| Financial Leverage, Industry | ||||||
| Energy | 1.86 | 2.02 | 2.17 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Financial leverage = Total assets ÷ Total ONEOK shareholders’ equity
= 24,379,094 ÷ 6,493,885 = 3.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | ONEOK Inc. financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022. |
Interest Coverage
ONEOK Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to ONEOK | 1,722,221) | 1,499,706) | 612,809) | 1,278,577) | 1,151,703) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 3,329) | |
| Add: Income tax expense | 527,424) | 484,498) | 189,507) | 372,414) | 362,903) | |
| Add: Interest expense, net of capitalized interest | 675,946) | 732,924) | 712,886) | 491,773) | 469,620) | |
| Earnings before interest and tax (EBIT) | 2,925,591) | 2,717,128) | 1,515,202) | 2,142,764) | 1,987,555) | |
| Solvency Ratio | ||||||
| Interest coverage1 | 4.33 | 3.71 | 2.13 | 4.36 | 4.23 | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Chevron Corp. | 97.27 | 31.39 | -9.69 | — | — | |
| ConocoPhillips | 36.07 | 15.38 | -2.90 | — | — | |
| Exxon Mobil Corp. | 98.43 | 33.98 | -23.94 | — | — | |
| Occidental Petroleum Corp. | 14.71 | 3.30 | -10.03 | — | — | |
| Interest Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 54.91 | 17.67 | -12.51 | — | — | |
| Interest Coverage, Industry | ||||||
| Energy | 48.83 | 16.26 | -13.30 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= 2,925,591 ÷ 675,946 = 4.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | ONEOK Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
ONEOK Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Federal statutory income tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in thousands) | ||||||
| Net income attributable to ONEOK | 1,722,221) | 1,499,706) | 612,809) | 1,278,577) | 1,151,703) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | 3,329) | |
| Add: Income tax expense | 527,424) | 484,498) | 189,507) | 372,414) | 362,903) | |
| Add: Interest expense, net of capitalized interest | 675,946) | 732,924) | 712,886) | 491,773) | 469,620) | |
| Earnings before interest and tax (EBIT) | 2,925,591) | 2,717,128) | 1,515,202) | 2,142,764) | 1,987,555) | |
| Add: Operating lease costs | —) | 17,747) | 17,162) | 6,803) | —) | |
| Earnings before fixed charges and tax | 2,925,591) | 2,734,875) | 1,532,364) | 2,149,567) | 1,987,555) | |
| Interest expense, net of capitalized interest | 675,946) | 732,924) | 712,886) | 491,773) | 469,620) | |
| Operating lease costs | —) | 17,747) | 17,162) | 6,803) | —) | |
| Preferred stock dividends | 1,100) | 1,100) | 1,100) | 1,100) | 1,100) | |
| Preferred stock dividends, tax adjustment1 | 292) | 292) | 292) | 292) | 292) | |
| Preferred stock dividends, after tax adjustment | 1,392) | 1,392) | 1,392) | 1,392) | 1,392) | |
| Fixed charges | 677,338) | 752,063) | 731,440) | 499,968) | 471,012) | |
| Solvency Ratio | ||||||
| Fixed charge coverage2 | 4.32 | 3.64 | 2.09 | 4.30 | 4.22 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors3 | ||||||
| Chevron Corp. | 18.28 | 8.43 | -1.29 | — | — | |
| ConocoPhillips | 28.76 | 11.94 | -1.79 | — | — | |
| Exxon Mobil Corp. | 31.21 | 13.55 | -9.65 | — | — | |
| Occidental Petroleum Corp. | 6.42 | 1.78 | -4.00 | — | — | |
| Fixed Charge Coverage, Sector | ||||||
| Oil, Gas & Consumable Fuels | 20.00 | 7.82 | -4.39 | — | — | |
| Fixed Charge Coverage, Industry | ||||||
| Energy | 17.37 | 7.02 | -4.45 | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Preferred stock dividends, tax adjustment = (Preferred stock dividends × Federal statutory income tax rate) ÷ (1 − Federal statutory income tax rate)
= (1,100 × 21.00%) ÷ (1 − 21.00%) = 292
2 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 2,925,591 ÷ 677,338 = 4.32
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | ONEOK Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |