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).
- Debt to Equity
- The debt to equity ratio showed an upward trend from 1.43 in 2018 to a peak of 2.36 in 2020, indicating increasing leverage. Subsequently, it decreased moderately to 2.1 by 2022, suggesting a reduction in reliance on debt relative to equity after the 2020 peak.
- Debt to Equity (Including Operating Lease Liability)
- This ratio mirrors the pattern of the standard debt to equity ratio, with a slight increase from 1.43 in 2018 to 2.38 in 2020, followed by a gradual decrease to 2.11 in 2022. The close alignment of values to the traditional debt to equity ratio implies that operating lease liabilities have a relatively small impact on overall leverage.
- Debt to Capital
- Debt to capital ratio increased from 0.59 in 2018 to 0.7 in 2020, indicating a rising proportion of debt in the capital structure. It remained relatively stable around that level through 2021 and 2022, with a slight decrease to 0.68 in 2022. This suggests stable capital structure management in recent years following the initial increase.
- Debt to Capital (Including Operating Lease Liability)
- The trend closely resembles the debt to capital ratio, rising to 0.7 in 2020 and holding steady in subsequent years before a minor decrease in 2022, confirming minimal additional risk contribution from operating lease liabilities.
- Debt to Assets
- The debt to assets ratio rose from 0.52 in 2018 to 0.62 in 2020, showing increased use of debt to finance assets. It then declined to 0.56 by 2022, signifying a decrease in debt financing relative to total assets after the peak, consistent with reductions seen in leverage metrics.
- Debt to Assets (Including Operating Lease Liability)
- This ratio follows the same trajectory as the debt to assets ratio, reinforcing the conclusion that operating leases have a minimal effect on overall asset financing and risk profile.
- Financial Leverage
- Financial leverage increased steadily from 2.77 in 2018 to 3.93 in 2021, reflecting growing use of debt relative to equity. However, a slight reduction to 3.75 in 2022 indicates some deleveraging efforts after reaching the peak.
- Interest Coverage
- Interest coverage ratio remained fairly stable around 4.2 in 2018 and 2019, but dropped sharply to 2.13 in 2020, suggesting reduced earnings relative to interest obligations, possibly due to external pressures. The ratio improved to 3.71 in 2021 and further to 4.33 in 2022, indicating recovery and stronger ability to cover interest expenses over time.
- Fixed Charge Coverage
- A similar pattern is observed with fixed charge coverage, which declined significantly from approximately 4.2 in 2018 and 2019 to 2.09 in 2020, then recovered to 3.64 in 2021 and 4.32 in 2022. This mirrors the interest coverage trend, emphasizing transient financial strain in 2020 and subsequent improvement.
Debt Ratios
Coverage Ratios
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.
- Total Debt
- The total debt increased significantly from 9,408,993 thousand US dollars in 2018 to a peak of 14,260,367 thousand US dollars in 2020. Following this peak, it decreased slightly to 13,667,116 thousand US dollars in 2021 and remained relatively stable at 13,643,087 thousand US dollars in 2022. This pattern indicates an overall upward trend in indebtedness until 2020, followed by a modest reduction and stabilization over the next two years.
- Total ONEOK Shareholders’ Equity
- Shareholders’ equity showed a declining trend from 6,579,543 thousand US dollars in 2018 to its lowest point of 6,015,163 thousand US dollars in 2021. However, in 2022, there was a noticeable recovery to 6,493,885 thousand US dollars. This suggests some erosion in equity value over the first four years but an improvement in equity position in the most recent year.
- Debt to Equity Ratio
- The debt to equity ratio exhibited a rising trend from 1.43 in 2018 to a high of 2.36 in 2020, indicating increasing leverage and higher reliance on debt relative to equity during this period. After 2020, the ratio decreased progressively to 2.27 in 2021 and 2.10 in 2022, reflecting a partial reduction in financial leverage. Despite this decline, the ratio remained substantially elevated compared to 2018 levels, signifying a sustained higher leverage position.
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.
- Total Debt (including operating lease liability)
- The total debt increased significantly from 9.41 billion US dollars in 2018 to a peak of 14.36 billion in 2020. Following that peak, the debt level slightly decreased to approximately 13.75 billion in 2021 and further to 13.72 billion in 2022. This indicates a substantial increase in leverage over the five-year period, with the highest debt load observed in 2020.
- Total Shareholders’ Equity
- Shareholders’ equity exhibited a declining trend from 6.58 billion in 2018 down to 6.04 billion in 2020, representing a weakening equity base during this initial period. However, equity remained relatively stable around 6.02 billion in 2021, followed by an improvement to approximately 6.49 billion in 2022. This recovery may suggest some strengthening in the company’s net asset position after several years of decline.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio rose sharply from 1.43 in 2018 to a peak of 2.38 in 2020, reflecting an increase in financial leverage and greater reliance on debt relative to equity. After 2020, the ratio began to decrease slightly to 2.29 in 2021 and further to 2.11 in 2022, indicating a moderate effort to reduce leverage or improve equity levels. Nonetheless, the ratio remained elevated compared to the 2018 baseline, implying a consistently higher risk profile in terms of capital structure.
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.
- Total Debt
-
The total debt shows a general increasing trend over the five-year period. Debt rose significantly from $9.41 billion in 2018 to a peak of approximately $14.26 billion in 2020. Following this peak, there was a slight reduction with debt levels stabilizing around $13.67 billion in 2021 and further marginally decreasing to $13.64 billion in 2022. This suggests a strategic management of debt levels after reaching the highest point in 2020.
- Total Capital
-
Total capital increased steadily from $15.99 billion in 2018 to $20.3 billion in 2020. A slight decline was noted in 2021 to $19.68 billion, followed by a moderate recovery to about $20.14 billion in 2022. Overall, the capital base expanded by approximately 26% over the five years, indicating growth in the company's financial structure despite some fluctuations.
- Debt to Capital Ratio
-
The debt to capital ratio rose from 0.59 in 2018 to 0.7 in 2020, reflecting an increased reliance on debt financing relative to the total capital. After 2020, this ratio declined slightly, reaching 0.69 in 2021 and 0.68 in 2022, which suggests a modest shift towards a more balanced capital structure, though debt remains the predominant portion of the capital mix.
- Summary
-
Analyzing the data across the five-year span reveals that the company increased both its debt and total capital, with debt growing at a somewhat faster rate initially. The peak of debt in 2020 corresponds with the highest debt-to-capital ratio, indicating maximum leverage during that period. Subsequent years show a strategy focused on stabilizing and slightly reducing leverage. The debt-to-capital ratio around 0.68–0.7 indicates a capital structure heavily weighted toward debt but with some improvement in balance over time. This approach suggests careful management of financial risk while maintaining access to capital for operations or growth.
Debt to Capital (including Operating Lease Liability)
ONEOK Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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.
The financial data reveals several trends concerning the company's debt and capital structure over the five-year period ending December 31, 2022.
- Total Debt
- Total debt, including operating lease liabilities, showed a consistent increase from 2018 to 2020, rising from approximately $9.41 billion to $14.36 billion. This growth slowed and slightly reversed afterward, with debt levels decreasing to about $13.75 billion in 2021 and further to $13.72 billion in 2022.
- Total Capital
- Total capital, also including operating lease liabilities, followed a similar upward trajectory initially, increasing from approximately $15.99 billion in 2018 to over $20.4 billion by 2020. However, a dip occurred in 2021 to around $19.77 billion, with a modest recovery to approximately $20.22 billion in 2022.
- Debt to Capital Ratio
- The debt-to-capital ratio increased steadily from 0.59 in 2018 to a peak of 0.7 in 2020 and 2021, indicating a higher proportion of debt in the capital structure during these years. In 2022, the ratio slightly declined to 0.68, suggesting a moderate reduction in leverage.
Overall, the data suggest that the company expanded its leverage and capital base significantly between 2018 and 2020. Despite a stabilization and minor reduction in total debt after 2020, the proportion of debt in the capital structure remained elevated relative to 2018, indicating sustained reliance on debt financing. The modest decrease in the debt-to-capital ratio in the latest year might reflect efforts to strengthen the capital position or reduce financial risk, although the ratio remains near peak historical levels within the period analyzed.
Debt to Assets
ONEOK Inc., debt to assets calculation, comparison to benchmarks
| Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | Dec 31, 2018 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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.
- Total Debt
- The total debt increased significantly from 9,408,993 thousand US dollars in 2018 to a peak of 14,260,367 thousand US dollars in 2020. Following this peak, it decreased slightly to 13,667,116 thousand US dollars in 2021 and remained relatively stable at 13,643,087 thousand US dollars in 2022.
- Total Assets
- Total assets exhibited a consistent upward trend over the period. Starting at 18,231,671 thousand US dollars in 2018, they increased steadily each year to reach 24,379,094 thousand US dollars by the end of 2022.
- Debt to Assets Ratio
- The debt to assets ratio—calculated as total debt divided by total assets—rose from 0.52 in 2018 to a high of 0.62 in 2020, indicating an increased proportion of debt financing relative to assets during this period. Subsequently, the ratio declined to 0.58 in 2021 and further to 0.56 in 2022, reflecting a moderate reduction in the company's leverage relative to its asset base.
- Overall Analysis
- Over the five-year span, total assets demonstrated steady growth, signaling expansion or accumulation of asset base. Meanwhile, total debt growth outpaced asset growth initially, peaking in 2020, which contributed to a higher leverage ratio. However, from 2020 onward, the company appears to have managed its debt levels more cautiously, reducing leverage moderately by 2022. The trends suggest an effort to balance growth with financial risk by stabilizing and slightly reducing debt relative to assets after a period of increased borrowing.
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.
- Total debt (including operating lease liability)
- The total debt increased substantially from 9.41 billion USD at the end of 2018 to a peak of approximately 14.36 billion USD at the end of 2020. Following this peak, there was a slight decrease in total debt, reaching around 13.72 billion USD by the end of 2022. This indicates a period of significant borrowing or debt accumulation up to 2020, followed by a moderate reduction or stabilization in the subsequent years.
- Total assets
- Total assets demonstrated a consistent upward trend over the entire period, growing steadily from about 18.23 billion USD in 2018 to nearly 24.38 billion USD in 2022. This steady asset growth suggests ongoing investments, acquisitions, or asset appreciations contributing positively to the company’s asset base throughout these years.
- Debt to assets ratio (including operating lease liability)
- The debt-to-assets ratio rose from 0.52 in 2018 to a high of 0.62 in 2020, reflecting an increase in leverage relative to asset growth during this period. Subsequently, the ratio decreased to 0.56 by 2022, indicating a reduction in financial leverage or a relatively faster growth in assets compared to liabilities. This suggests a deliberate effort to improve the capital structure balance or deleverage following the peak in 2020.
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.
- Total assets
- Total assets exhibited a consistent upward trend over the observed five-year period. Beginning at approximately 18.2 billion USD at the end of 2018, the assets increased each year, culminating in roughly 24.4 billion USD by the end of 2022. This steady growth suggests ongoing investments or asset acquisitions enhancing the company's resource base.
- Total ONEOK shareholders’ equity
- Shareholders' equity demonstrated a declining trend from 2018 through 2021, decreasing from about 6.58 billion USD to just over 6 billion USD. However, in 2022, equity increased significantly to approximately 6.49 billion USD. This reversal in the equity trajectory in the final year may indicate improved profitability, capital injections, or other positive equity adjustments.
- Financial leverage
- Financial leverage ratio rose sharply from 2.77 at the end of 2018 to a peak of 3.93 in 2021, indicating a growing reliance on debt financing relative to equity. In 2022, this ratio decreased slightly to 3.75, suggesting a modest reduction in leverage. Overall, the company maintained a relatively high leverage level throughout the period, reflecting strategic financial structuring involving considerable debt usage.
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.
- Earnings before interest and tax (EBIT)
- The EBIT displayed a fluctuating trend over the five-year period. It increased from approximately 1.99 billion US dollars in 2018 to about 2.14 billion US dollars in 2019, representing moderate growth. There was a significant decline in 2020, with EBIT falling to approximately 1.52 billion US dollars, marking a notable contraction in operational profitability. Following this decline, EBIT recovered substantially in 2021, reaching nearly 2.72 billion US dollars, and continued to improve slightly in 2022, with EBIT recorded at roughly 2.93 billion US dollars. This indicates a strong rebound and enhancement in operational performance after the 2020 dip.
- Interest expense, net of capitalized interest
- Interest expense demonstrated an overall increasing trend from 2018 through 2021. Beginning at around 470 million US dollars in 2018, it rose steadily, peaking at approximately 733 million US dollars in 2021. However, in 2022, interest expense decreased to about 676 million US dollars. The increase up to 2021 suggests growing debt service costs or higher borrowing levels, whereas the decline in 2022 may reflect debt repayment, refinancing, or declining interest rates.
- Interest coverage ratio
- The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, reflected volatility in line with changes in EBIT and interest expenses. The ratio was strong in 2018 and 2019, with values above 4 (4.23 and 4.36 respectively), indicating robust coverage. In 2020, the ratio declined sharply to 2.13, primarily due to the drop in EBIT combined with rising interest expenses, signaling reduced cushion to service interest payments. Recovery occurred in 2021, with the ratio increasing to 3.71, and further improvement in 2022 to 4.33. These movements imply enhanced financial flexibility and ability to cover interest expenses in the latter years of the period.
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.
- Earnings before fixed charges and tax
- This metric exhibited fluctuations over the five-year period. Starting at approximately 1.99 billion USD in 2018, it increased slightly to about 2.15 billion USD in 2019, then declined significantly to roughly 1.53 billion USD in 2020. Subsequently, it rebounded strongly, rising to approximately 2.73 billion USD in 2021 and further to around 2.93 billion USD in 2022. This pattern indicates a substantial recovery and growth following the downturn in 2020.
- Fixed charges
- Fixed charges showed an overall increasing trend from 2018 through 2021, rising from about 471 million USD in 2018 to a peak of approximately 752 million USD in 2021. In 2022, fixed charges decreased noticeably to roughly 677 million USD. The initial increase followed by the recent decline suggests a possible reduction in interest obligations or lease expenses impacting the latest year's costs.
- Fixed charge coverage ratio
- The fixed charge coverage ratio, which measures the company’s ability to cover fixed charges from earnings before fixed charges and taxes, showed volatility over the period. It started at 4.22 in 2018, increased slightly to 4.30 in 2019, then dropped sharply to 2.09 in 2020, reflecting the drop in earnings combined with rising fixed charges. This ratio improved significantly in 2021 to 3.64 and further increased to 4.32 in 2022, surpassing the initial levels from 2018 and 2019. This improvement indicates enhanced financial stability and an increased capacity to meet fixed financial obligations.