Analysis of Solvency Ratios
Quarterly Data
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 (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Debt to Equity Ratio
- The debt to equity ratio demonstrates a rising trend from early 2018 through to early 2020, peaking at 2.55 by March 31, 2020. Following this apex, there is a general decline, with some minor fluctuations, down to 1.77 in June 2023. This progression suggests an initially increased reliance on debt financing relative to equity, followed by a measured reduction in leverage over the last three years.
- Debt to Equity Ratio Including Operating Lease Liability
- The trend closely mirrors the standard debt to equity ratio, confirming that operating lease liabilities have a proportional impact on overall debt levels. The peak occurs similarly in early 2020, followed by a consistent decrease to 1.78 by mid-2023, indicating improved balance sheet management regarding leases and debt obligations.
- Debt to Capital Ratio
- This ratio gradually increased from 0.54 at the start of 2018 to a high of approximately 0.72 around March 2020. Since then, the ratio has shown a steady decline, reaching 0.64 in June 2023. The pattern suggests the company increased its debt proportion relative to total capital leading up to 2020, then moved to reduce this leverage in subsequent years.
- Debt to Capital Ratio Including Operating Lease Liability
- The inclusion of operating lease liabilities does not materially alter the debt to capital ratio pattern. The trend is consistent with the standard debt to capital ratio, reinforcing the observation that lease obligations form a relatively stable portion of total capital structure throughout the period.
- Debt to Assets Ratio
- The debt to assets ratio increased steadily from 0.49 in March 2018 to 0.64 at the peak in March 2020. Post-peak, a gradual reduction is seen with the ratio lowering to 0.53 by June 2023. This trend indicates an increasing share of debt in asset financing up to 2020, followed by a phase of deleveraging and increased asset base or reduced debt levels.
- Debt to Assets Ratio Including Operating Lease Liability
- With operating lease liabilities included, the ratio shows a similar trajectory, slightly higher at peak points but converging closely with the standard debt to assets ratio over time. This confirms that operating leases have a consistent effect on asset-related leverage without introducing significant volatility.
- Financial Leverage Ratio
- The financial leverage ratio climbed from 2.45 at the beginning of 2018 to a maximum of 4.09 by late 2021. After this peak, it began to decline, dropping to 3.33 by June 2023. This pattern suggests a strengthening in asset utilization financed by equity and debt combined, with a notable reduction in leverage intensity in the later periods.
- Interest Coverage Ratio
- Data is incomplete for early 2018 through mid-2019. Available figures show relatively stable interest coverage ratios around 4.23 to 4.45 in 2018 and 2019. A significant decline occurred in 2020, ranging from 3.01 down to 2.13 in late 2020, indicating increased difficulty in covering interest expenses at that time. From 2021 onward, a recovery trend is notable, with ratios improving from around 3.46 in mid-2021 to 5.69 in June 2023, suggesting enhanced earnings relative to interest obligations and improved financial health.
Debt Ratios
Coverage Ratios
Debt to Equity
ONEOK Inc., debt to equity calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity1 | 1.77 | 1.85 | 2.10 | 2.18 | 2.25 | 2.29 | 2.27 | 2.43 | 2.40 | 2.33 | 2.36 | 2.32 | 2.29 | 2.55 | 2.04 | 2.01 | 1.74 | 1.60 | 1.43 | 1.35 | 1.23 | 1.20 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | 0.23 | 0.27 | 0.32 | 0.34 | 0.34 | 0.26 | 0.25 | 0.22 | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | 0.44 | 0.45 | 0.45 | 0.46 | 0.51 | 0.50 | 0.48 | 0.48 | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | 0.28 | 0.35 | 0.38 | 0.40 | 0.43 | 0.39 | 0.39 | 0.33 | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.68 | 0.67 | 0.66 | 0.73 | 0.80 | 1.06 | 1.46 | 1.68 | 1.97 | 1.97 | 1.95 | 1.94 | 1.65 | 1.23 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to equity = Total debt ÷ Total ONEOK shareholders’ equity
= 12,742 ÷ 7,218 = 1.77
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals notable trends in the company's capital structure over the observed periods.
- Total Debt (US$ in millions)
- Total debt exhibits a clear upward trend from March 31, 2018, starting at 8,024 million USD and peaking around December 31, 2019, at approximately 12,707 million USD. After this peak, the debt level stabilizes with minor fluctuations, maintaining a range mostly between 13,000 and 14,200 million USD until December 31, 2020. From 2021 onwards, debt levels show a gradual decline, reaching 12,742 million USD by June 30, 2023, indicating a reduction in leverage in the most recent periods.
- Total ONEOK Shareholders’ Equity (US$ in millions)
- Shareholders’ equity displays a generally declining trend from March 31, 2018, initially at 6,701 million USD, decreasing steadily to a low point around March 31, 2020, at 5,561 million USD. From mid-2020 onwards, equity figures show some recovery and stabilization, fluctuating between approximately 5,900 and 7,200 million USD, with a marked increase observed from March 31, 2021, reaching up to 7,218 million USD by June 30, 2023. This moderate recovery in equity suggests some strengthening of the company’s net asset position in recent years.
- Debt to Equity Ratio
- The debt to equity ratio increases substantially from 1.2 in March 2018 to a peak of 2.55 by March 31, 2020, reflecting increased leverage and a comparatively higher level of debt relative to shareholders’ equity. Thereafter, the ratio gradually decreases, underpinning the observed reduction in total debt and recovery in equity, falling to 1.77 by June 30, 2023. This indicates an overall trend toward a more balanced and potentially less risky capital structure in the latest periods.
In summary, the periods leading up to early 2020 are characterized by increasing debt and deteriorating equity levels, which elevate financial leverage to relatively high levels. Since 2020, there is evidence of a strategic effort to reduce debt and strengthen equity, resulting in improved debt to equity ratios and suggesting enhanced financial stability in the most recent quarters.
Debt to Equity (including Operating Lease Liability)
ONEOK Inc., debt to equity (including operating lease liability) calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Current operating lease liability | 12) | 12) | 12) | 12) | 12) | 13) | 14) | 14) | 15) | 13) | 14) | 14) | 14) | 13) | 2) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Noncurrent operating lease liability | 63) | 66) | 68) | 70) | 71) | 74) | 76) | 78) | 82) | 85) | 88) | 91) | 94) | 96) | 14) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 12,817) | 13,306) | 13,701) | 13,859) | 13,852) | 13,810) | 13,733) | 14,269) | 14,270) | 14,281) | 14,337) | 14,361) | 14,391) | 14,264) | 12,723) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to equity (including operating lease liability)1 | 1.78 | 1.87 | 2.11 | 2.20 | 2.27 | 2.30 | 2.28 | 2.44 | 2.41 | 2.34 | 2.37 | 2.34 | 2.31 | 2.57 | 2.04 | 2.01 | 1.74 | 1.60 | 1.43 | 1.35 | 1.23 | 1.20 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | 0.69 | 0.68 | 0.67 | 0.74 | 0.80 | 1.07 | 1.47 | 1.69 | 1.99 | 1.99 | 1.97 | 1.96 | 1.67 | 1.25 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total ONEOK shareholders’ equity
= 12,817 ÷ 7,218 = 1.78
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibited a rising trend from March 31, 2018, at $8,024 million, peaking around December 31, 2020, at approximately $14,337 million. After this peak, a gradual decline is observed, with debt decreasing steadily to $12,817 million by June 30, 2023. This suggests a period of debt accumulation followed by efforts to reduce leverage in the most recent quarters.
- Total ONEOK Shareholders’ Equity
- Shareholders' equity decreased steadily from $6,701 million in March 2018 to a low of $5,561 million in March 2020. Following this decline, equity levels showed some recovery and fluctuation, gradually increasing to $7,218 million by June 30, 2023. This pattern indicates that despite initial erosion, the equity base strengthened in recent periods.
- Debt to Equity Ratio (including operating lease liability)
- The debt-to-equity ratio rose significantly from 1.2 in March 2018, reaching a peak of 2.57 by March 2020. This increase reflects a growing debt level relative to equity, indicating higher financial leverage during this period. After March 2020, the ratio declined steadily to 1.78 by June 2023, implying a reduced reliance on debt financing compared to equity, consistent with the observed trends in total debt reduction and equity recovery.
- Overall Trends and Insights
- Over the analyzed timeframe, the company experienced a phase of increasing indebtedness and shrinking equity until early 2020, leading to heightened financial leverage. From 2020 onwards, a strategic deleveraging process seems apparent, with both debt reductions and equity improvements contributing to a more balanced capital structure. The declining debt-to-equity ratio in the latest periods indicates enhanced financial stability and potentially a lower risk profile.
Debt to Capital
ONEOK Inc., debt to capital calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Total capital | 19,960) | 20,360) | 20,115) | 20,089) | 19,883) | 19,718) | 19,659) | 20,017) | 20,084) | 20,279) | 20,278) | 20,403) | 20,525) | 19,715) | 18,933) | 18,706) | 17,410) | 16,754) | 15,961) | 15,606) | 14,845) | 14,726) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital1 | 0.64 | 0.65 | 0.68 | 0.69 | 0.69 | 0.70 | 0.69 | 0.71 | 0.71 | 0.70 | 0.70 | 0.70 | 0.70 | 0.72 | 0.67 | 0.67 | 0.64 | 0.62 | 0.59 | 0.57 | 0.55 | 0.54 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | 0.18 | 0.22 | 0.24 | 0.26 | 0.25 | 0.21 | 0.20 | 0.18 | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | 0.31 | 0.31 | 0.31 | 0.32 | 0.34 | 0.33 | 0.32 | 0.32 | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | 0.22 | 0.26 | 0.28 | 0.29 | 0.30 | 0.28 | 0.28 | 0.25 | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.41 | 0.40 | 0.40 | 0.42 | 0.44 | 0.51 | 0.59 | 0.63 | 0.66 | 0.66 | 0.66 | 0.66 | 0.62 | 0.55 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 12,742 ÷ 19,960 = 0.64
2 Click competitor name to see calculations.
The analysis of the financial data reveals distinct trends in debt and capital management over the observed periods.
- Total debt
- Total debt exhibited a generally upward trajectory from March 31, 2018, through March 31, 2020, increasing from approximately 8.0 billion US dollars to over 14.1 billion US dollars. From that peak, debt levels stabilized and slightly decreased, reaching approximately 12.7 billion US dollars by June 30, 2023. This pattern suggests an initial phase of rising leverage followed by modest deleveraging or controlled debt management in recent quarters.
- Total capital
- Total capital mirrored a similar growth pattern, rising steadily from about 14.7 billion US dollars at the beginning of the period to above 20.5 billion US dollars by mid-2020. Following this peak, total capital values fluctuated within a narrow range, ending slightly below the previous highs at approximately 20.0 billion US dollars in June 2023. This indicates continued capital base expansion until 2020, followed by a period of relative stabilization.
- Debt to capital ratio
- The debt to capital ratio increased from 0.54 in early 2018, peaking at 0.72 by March 31, 2020. Afterward, there was a gradual decline to 0.64 by June 2023. This metric reflects a rising dependence on debt financing up to early 2020, succeeded by a trend toward reducing leverage or balancing the capital structure more conservatively during the subsequent years.
Overall, the data suggests a strategy of initially increasing debt and capital to support company activities, with a cautious approach toward managing leverage emerging post-2020. The decline in debt and stabilization of capital indicate efforts to strengthen the financial position and optimize capital structure amid evolving market or operational conditions.
Debt to Capital (including Operating Lease Liability)
ONEOK Inc., debt to capital (including operating lease liability) calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Current operating lease liability | 12) | 12) | 12) | 12) | 12) | 13) | 14) | 14) | 15) | 13) | 14) | 14) | 14) | 13) | 2) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Noncurrent operating lease liability | 63) | 66) | 68) | 70) | 71) | 74) | 76) | 78) | 82) | 85) | 88) | 91) | 94) | 96) | 14) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 12,817) | 13,306) | 13,701) | 13,859) | 13,852) | 13,810) | 13,733) | 14,269) | 14,270) | 14,281) | 14,337) | 14,361) | 14,391) | 14,264) | 12,723) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Total capital (including operating lease liability) | 20,035) | 20,438) | 20,195) | 20,171) | 19,967) | 19,804) | 19,748) | 20,110) | 20,180) | 20,378) | 20,380) | 20,508) | 20,632) | 19,825) | 18,949) | 18,706) | 17,410) | 16,754) | 15,961) | 15,606) | 14,845) | 14,726) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to capital (including operating lease liability)1 | 0.64 | 0.65 | 0.68 | 0.69 | 0.69 | 0.70 | 0.70 | 0.71 | 0.71 | 0.70 | 0.70 | 0.70 | 0.70 | 0.72 | 0.67 | 0.67 | 0.64 | 0.62 | 0.59 | 0.57 | 0.55 | 0.54 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | 0.41 | 0.40 | 0.40 | 0.43 | 0.45 | 0.52 | 0.59 | 0.63 | 0.67 | 0.67 | 0.66 | 0.66 | 0.63 | 0.55 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 12,817 ÷ 20,035 = 0.64
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt demonstrates a general upward trend from March 2018 through June 2020, increasing from approximately $8.0 billion to around $14.4 billion. Following this peak, the debt level remains relatively stable with minor fluctuations through the end of 2021. From the first quarter of 2022 onward, a gradual decrease in total debt is observed, declining to about $12.8 billion by June 2023.
- Total capital (including operating lease liability)
- Total capital also exhibits an increasing trend from March 2018 to June 2020, rising from approximately $14.7 billion to a peak near $20.6 billion. After this high point, total capital experiences slight declines and stabilization through 2021 and into early 2022. Similar to debt, there is a modest downward movement in total capital from the first quarter of 2022 to mid-2023, ending near $20.0 billion.
- Debt to capital (including operating lease liability)
- The debt-to-capital ratio shows a consistent increase from 0.54 in March 2018 to a peak of 0.72 in March 2020, indicating a growing proportion of debt within the capital structure over this period. From mid-2020 onwards, this ratio stabilizes around 0.70 to 0.71 before gradually declining to 0.64 by June 2023. This trend suggests a shift towards a somewhat lower leverage ratio in the most recent periods.
- Overall Analysis
- Over the five-year span, there is a clear pattern of increasing leverage through early 2020, reflected in rising total debt, total capital, and debt-to-capital ratio. Post-2020, the data suggests a strategic effort to stabilize and then reduce leverage, primarily through lowering total debt while maintaining relatively stable total capital. This shift may reflect an intentional move to improve financial flexibility or reduce financial risk following a period of elevated debt levels. The progressive decline in the debt-to-capital ratio from 2021 onward supports this interpretation.
Debt to Assets
ONEOK Inc., debt to assets calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total assets | 24,038) | 24,464) | 24,379) | 24,439) | 24,527) | 23,993) | 23,622) | 23,872) | 23,437) | 23,180) | 23,079) | 22,781) | 22,992) | 21,969) | 21,812) | 21,336) | 19,752) | 18,934) | 18,232) | 17,911) | 16,914) | 16,432) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets1 | 0.53 | 0.54 | 0.56 | 0.56 | 0.56 | 0.57 | 0.58 | 0.59 | 0.60 | 0.61 | 0.62 | 0.63 | 0.62 | 0.64 | 0.58 | 0.59 | 0.56 | 0.54 | 0.51 | 0.50 | 0.48 | 0.49 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | 0.13 | 0.16 | 0.18 | 0.19 | 0.18 | 0.16 | 0.15 | 0.14 | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | 0.22 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.24 | 0.23 | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | 0.14 | 0.17 | 0.18 | 0.19 | 0.20 | 0.19 | 0.19 | 0.17 | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 0.28 | 0.28 | 0.27 | 0.29 | 0.30 | 0.36 | 0.39 | 0.42 | 0.45 | 0.45 | 0.45 | 0.46 | 0.43 | 0.38 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 12,742 ÷ 24,038 = 0.53
2 Click competitor name to see calculations.
- Total Debt
- The total debt exhibited a generally increasing trend from March 2018 through mid-2020, growing from approximately $8.0 billion to over $14.2 billion. Following this peak, total debt remained relatively stable through 2021, fluctuating narrowly around $14.1 billion to $13.6 billion. From early 2022 onward, a moderate decline is observable, with debt levels decreasing incrementally to around $12.7 billion by mid-2023.
- Total Assets
- Total assets demonstrated steady growth from roughly $16.4 billion in March 2018 to a peak near $24.4 billion by mid-2022. This growth was consistent over the entire period, with slight fluctuations in late 2022 and early 2023 that reflect a minor stabilization or plateauing of asset values around this level, ending at approximately $24.0 billion by June 2023.
- Debt to Assets Ratio
- The debt to assets ratio indicated a rising trend from 0.49 in early 2018 to a peak of about 0.64 by March 2020, reflecting an increase in leverage relative to assets. From this peak, the ratio gradually declined, reaching approximately 0.53 by mid-2023. This decline suggests that, despite the previously high leverage, the company has reduced its relative debt burden over recent periods, potentially through debt reduction and/or asset growth.
- Overall Analysis
- The data reveal an initial phase of increasing leverage and debt accumulation until early 2020. Following this, there is a clear effort to stabilize and then reduce debt levels, combined with continuous asset growth. This has resulted in a downward shift of the debt to assets ratio, implying an improving financial structure with potentially lower risk exposure. The stabilization and slight reduction in total assets toward the end of the period may warrant further observation to determine if this trend will continue or reflect short-term fluctuations.
Debt to Assets (including Operating Lease Liability)
ONEOK Inc., debt to assets (including operating lease liability) calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current maturities of long-term debt | —) | 500) | 925) | 925) | 896) | 896) | 896) | 536) | 536) | 544) | 8) | 8) | 8) | 8) | 8) | 8) | 308) | 308) | 508) | 508) | 933) | 933) | |||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | —) | 120) | 156) | —) | |||||||
| Long-term debt, excluding current maturities | 12,742) | 12,728) | 12,696) | 11,951) | 12,873) | 12,750) | 12,748) | 13,640) | 13,638) | 13,639) | 14,228) | 14,249) | 14,276) | 14,147) | 12,480) | 12,479) | 10,754) | 10,004) | 8,873) | 8,326) | 7,091) | 7,092) | |||||||
| Total debt | 12,742) | 13,228) | 13,621) | 13,777) | 13,769) | 13,724) | 13,643) | 14,177) | 14,174) | 14,183) | 14,236) | 14,257) | 14,284) | 14,154) | 12,707) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Current operating lease liability | 12) | 12) | 12) | 12) | 12) | 13) | 14) | 14) | 15) | 13) | 14) | 14) | 14) | 13) | 2) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Noncurrent operating lease liability | 63) | 66) | 68) | 70) | 71) | 74) | 76) | 78) | 82) | 85) | 88) | 91) | 94) | 96) | 14) | —) | —) | —) | —) | —) | —) | —) | |||||||
| Total debt (including operating lease liability) | 12,817) | 13,306) | 13,701) | 13,859) | 13,852) | 13,810) | 13,733) | 14,269) | 14,270) | 14,281) | 14,337) | 14,361) | 14,391) | 14,264) | 12,723) | 12,487) | 11,062) | 10,312) | 9,381) | 8,953) | 8,180) | 8,024) | |||||||
| Total assets | 24,038) | 24,464) | 24,379) | 24,439) | 24,527) | 23,993) | 23,622) | 23,872) | 23,437) | 23,180) | 23,079) | 22,781) | 22,992) | 21,969) | 21,812) | 21,336) | 19,752) | 18,934) | 18,232) | 17,911) | 16,914) | 16,432) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Debt to assets (including operating lease liability)1 | 0.53 | 0.54 | 0.56 | 0.57 | 0.56 | 0.58 | 0.58 | 0.60 | 0.61 | 0.62 | 0.62 | 0.63 | 0.63 | 0.65 | 0.58 | 0.59 | 0.56 | 0.54 | 0.51 | 0.50 | 0.48 | 0.49 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||||||||||||||||||||||||
| Occidental Petroleum Corp. | 0.28 | 0.28 | 0.28 | 0.29 | 0.30 | 0.36 | 0.40 | 0.42 | 0.45 | 0.46 | 0.46 | 0.46 | 0.44 | 0.38 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 12,817 ÷ 24,038 = 0.53
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt shows a general upward trend from March 2018 through mid-2020, increasing from approximately $8.0 billion to a peak of around $14.4 billion. From that point onwards, the debt level remains relatively stable until a gradual decline begins in late 2021, continuing through mid-2023, ending at about $12.8 billion. This suggests an initial phase of debt accumulation followed by a period of deleveraging or stabilization of liabilities.
- Total Assets
- Total assets steadily rise over the entire period from about $16.4 billion at the start of 2018 to a peak of around $24.5 billion in mid-2022. After this peak, the asset base remains relatively steady, with minor fluctuations but no significant decline, ending slightly lower around $24.0 billion by mid-2023. This indicates consistent asset growth over the years, signifying continuous investment or asset acquisition.
- Debt to Assets Ratio (including operating lease liability)
- The debt-to-assets ratio fluctuates but overall reflects an increase from 0.49 in early 2018 to a peak of 0.65 by March 2020. Following this peak, the ratio exhibits a gradual decline, falling to approximately 0.53 by mid-2023. This pattern indicates a period of rising leverage up to early 2020, followed by successive deleveraging or asset growth outpacing debt increases in the subsequent years.
- Summary of Trends
- The company experienced a consistent increase in both debt and assets through early 2020, with debt rising at a somewhat faster pace than assets, as reflected in the increasing debt-to-assets ratio. Starting in early 2020, the firm appears to have adopted a more conservative financial posture, stabilizing and then reducing debt levels while maintaining relatively stable asset levels. The reduction in leverage after 2020 may imply strategic efforts to strengthen the balance sheet, potentially improving financial flexibility and reducing risk exposure.
Financial Leverage
ONEOK Inc., financial leverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Total assets | 24,038) | 24,464) | 24,379) | 24,439) | 24,527) | 23,993) | 23,622) | 23,872) | 23,437) | 23,180) | 23,079) | 22,781) | 22,992) | 21,969) | 21,812) | 21,336) | 19,752) | 18,934) | 18,232) | 17,911) | 16,914) | 16,432) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Financial leverage1 | 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 | 2.77 | 2.69 | 2.54 | 2.45 | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | 1.72 | 1.77 | 1.82 | 1.83 | 1.82 | 1.69 | 1.67 | 1.64 | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | 2.00 | 1.98 | 1.93 | 1.94 | 2.10 | 2.05 | 2.00 | 2.08 | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | 2.01 | 2.10 | 2.13 | 2.13 | 2.12 | 2.02 | 2.01 | 1.95 | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 2.45 | 2.42 | 2.41 | 2.51 | 2.67 | 2.98 | 3.69 | 4.01 | 4.38 | 4.34 | 4.31 | 4.25 | 3.83 | 3.25 | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Financial leverage = Total assets ÷ Total ONEOK shareholders’ equity
= 24,038 ÷ 7,218 = 3.33
2 Click competitor name to see calculations.
- Total assets
- The total assets show a general upward trend throughout the presented periods from March 31, 2018, to June 30, 2023. Starting at approximately 16.4 billion US dollars in March 2018, assets steadily increased until peaking around December 2021 at about 23.9 billion US dollars. Minor fluctuations are noted afterward, with the value stabilizing around 24 billion US dollars from March 2022 to June 2023. Overall, total assets expanded by nearly 46% over the five-year span, indicating growth in the company's asset base.
- Total ONEOK shareholders’ equity
- Shareholders’ equity experienced a declining trend initially, dropping from 6.7 billion US dollars in March 2018 to a low point near 5.6 billion in March 2020. Between March 2020 and December 2021, equity remained relatively stable, fluctuating between 6.0 and 6.1 billion US dollars. Notable improvement is observed from early 2022 onward, with equity increasing steadily to reach approximately 7.2 billion US dollars by June 2023. This recovery represents a significant rebound from earlier declines, with equity exceeding the starting point measured in 2018 by roughly 7%.
- Financial leverage
- The financial leverage ratio demonstrates an increasing trend initially, rising from 2.45 in March 2018 to a peak of approximately 4.09 in September 2021. This suggests increased use of debt relative to equity during this period. However, subsequent quarters indicate a reversal in this trend, with financial leverage ratios decreasing steadily to around 3.33 by June 2023. The declining leverage in the most recent periods aligns with the observed growth in shareholders’ equity, reflecting potential deleveraging or improved equity base relative to debt.
Interest Coverage
ONEOK Inc., interest coverage calculation (quarterly data)
| 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 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to ONEOK | 468) | 1,049) | 485) | 432) | 414) | 391) | 379) | 392) | 342) | 386) | 308) | 312) | 134) | (142) | 320) | 309) | 312) | 337) | 293) | 313) | 281) | 265) | |||||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | 1) | 1) | 2) | |||||||
| Add: Income tax expense | 145) | 330) | 142) | 132) | 131) | 122) | 130) | 122) | 110) | 122) | 95) | 107) | 43) | (55) | 98) | 97) | 99) | 78) | 97) | 103) | 88) | 76) | |||||||
| Add: Interest expense, net of capitalized interest | 180) | 166) | 166) | 167) | 171) | 172) | 178) | 184) | 185) | 186) | 177) | 176) | 219) | 141) | 129) | 130) | 117) | 115) | 118) | 122) | 113) | 116) | |||||||
| Earnings before interest and tax (EBIT) | 793) | 1,545) | 793) | 731) | 716) | 686) | 688) | 698) | 637) | 694) | 580) | 595) | 396) | (57) | 548) | 536) | 528) | 531) | 508) | 539) | 483) | 458) | |||||||
| Solvency Ratio | |||||||||||||||||||||||||||||
| Interest coverage1 | 5.69 | 5.65 | 4.33 | 4.10 | 3.95 | 3.77 | 3.71 | 3.57 | 3.46 | 2.99 | 2.13 | 2.23 | 2.30 | 3.01 | 4.36 | 4.37 | 4.45 | 4.39 | 4.23 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | 31.39 | 19.12 | 8.50 | -11.85 | -9.69 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | 15.38 | 9.41 | 4.77 | 1.17 | -2.90 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | 33.98 | -5.84 | -14.48 | -20.45 | -23.94 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 9.99 | 15.23 | 14.71 | 12.90 | 9.58 | 5.07 | 3.30 | 1.15 | -2.26 | -8.10 | -10.03 | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Interest coverage
= (EBITQ2 2023
+ EBITQ1 2023
+ EBITQ4 2022
+ EBITQ3 2022)
÷ (Interest expenseQ2 2023
+ Interest expenseQ1 2023
+ Interest expenseQ4 2022
+ Interest expenseQ3 2022)
= (793 + 1,545 + 793 + 731)
÷ (180 + 166 + 166 + 167)
= 5.69
2 Click competitor name to see calculations.
- Earnings before interest and tax (EBIT)
- The EBIT figures displayed a generally positive trend with increasing values from 2018 through early 2020, reaching a peak of 548 million USD in December 2019. However, a severe decline occurred in the first quarter of 2020, where EBIT plummeted to -57 million USD. This drop likely reflects a significant one-time event or operational challenge. Following this trough, EBIT recovered steadily and markedly, with sustained growth through 2021 and 2022, culminating in an impressive surge to 1,545 million USD in March 2023, nearly doubling prior highs. This suggests a robust recovery phase and strong operational performance into 2023. The subsequent quarter registered 793 million USD, indicating continued high profitability albeit below the peak.
- Interest expense, net of capitalized interest
- Interest expense remained relatively stable from 2018 through 2019, fluctuating between approximately 113 and 130 million USD each quarter. A distinct increase was observed starting in the first quarter of 2020, peaking at 219 million USD in June 2020, coinciding with the period of negative EBIT. Thereafter, interest expenses gradually decreased and stabilized around the 166–186 million USD range from late 2020 through mid-2023. This pattern may reflect changes in debt levels or refinancing activities, possibly related to addressing operational or market challenges faced in early 2020.
- Interest coverage ratio
- The interest coverage ratio experienced a notable decline from approximately 4.23 at the start of 2019 to a low of around 2.13 in December 2020, consistent with the drop in EBIT and rise in interest expense during this period. This indicates diminished capacity to cover interest obligations through operating earnings at that time. However, from early 2021 onwards, the ratio improved consistently, rising above 4.0 by the end of 2022 and reaching peaks of 5.65 and 5.69 in the first two quarters of 2023. This improvement reflects strengthening earnings relative to interest costs and suggests enhanced financial risk management and operational efficiency in the most recent periods.
- Overall analysis
- The data reveals a significant disruption impacting earnings and financial metrics in early 2020, likely linked to external or internal challenges. Following this, the company demonstrated a strong recovery trajectory in EBIT, maintaining steady interest expenses and improving interest coverage capacity. The marked increase in EBIT and the concomitant rise in interest coverage by 2023 point towards improved profitability and reduced financial risk. The stabilization of interest expenses suggests effective debt management during and after the recovery phase. The financial trend thus signals resilience and a strengthening financial position in recent periods.