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).
- Leverage Ratios
- The debt to equity ratio exhibited a rising trend from March 2019, starting at 1.6 and peaking at 2.55 by March 2020. Subsequently, it demonstrated a gradual decline, reaching 1.77 by June 2023. The inclusion of operating lease liabilities followed a similar pattern, with only marginal differences compared to the primary debt to equity ratio figures.
- Debt to capital ratios remained relatively stable over the period, fluctuating narrowly between 0.62 and 0.72. The highest values occurred around early 2020, with a slight decrease observed towards mid-2023. Including operating lease liabilities did not significantly alter these ratios, which implies lease obligations have a limited impact on overall capital structure.
- Debt to assets ratios also increased until early 2020, peaking around 0.64-0.65, and thereafter gradually decreased over subsequent years, ending at 0.53-0.54 by mid-2023. The addition of operating lease liabilities showed a marginal increase in ratio values but maintained a consistent downward trajectory after 2020.
- Financial leverage increased steadily from late 2018 into early 2020, rising from 2.94 to a peak of 3.95. After this peak, it declined to 3.33 by mid-2023, indicating a reduction in reliance on debt relative to equity over recent years.
- Interest Coverage
- Interest coverage ratios declined significantly during 2020, hitting lows near 2.13-2.3 in the mid-year quarters. This decline corresponds with the peak leverage ratios previously noted, suggesting increased interest burden during that period. Following 2020, the interest coverage ratio showed consistent improvement, rising steadily to reach levels above 5.6 by mid-2023. This improvement signals enhanced ability to meet interest expenses from earnings.
- Overall Trends and Insights
- The data reveals a period of increasing leverage and reduced interest coverage through early 2020, likely reflecting strategic financial decisions or market conditions impacting balance sheet structure and debt servicing capability. Post-2020, there is clear evidence of deleveraging with reductions in debt relative to equity and assets, coupled with strengthening interest coverage ratios. Stability in debt to capital ratios and only minor impacts from operating lease liabilities suggest a managed approach to capital structure and lease obligations.
- The trend toward lower financial leverage and improved interest coverage in recent quarters points to an enhanced financial position and reduced risk profile. This trend supports a more sustainable debt strategy and may reflect positive operational or market developments influencing earnings strength and capital management.
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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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Equity, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.14 | 0.15 | 0.15 | 0.15 | 0.17 | 0.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.35 | 0.35 | 0.35 | 0.35 | 0.34 | 0.38 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.21 | 0.21 | 0.21 | 0.24 | 0.26 | 0.28 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
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 financial data reflects the quarterly trends in total debt, shareholders’ equity, and the debt-to-equity ratio over several periods.
- Total Debt
- The total debt demonstrated a general upward trend from March 2019 through March 2020, increasing from approximately 10.3 billion USD to around 14.2 billion USD. Following this peak, debt levels stabilized somewhat, maintaining a range near 14 billion USD through 2021. Beginning in 2022, a gradual downward trend emerged, culminating in a reduction to about 12.7 billion USD by June 2023. This pattern indicates an initial expansion in leverage followed by a period of moderate deleveraging.
- Total Shareholders’ Equity
- Shareholders’ equity initially showed a slight decrease from about 6.4 billion USD in early 2019 to roughly 5.6 billion USD by March 2020, suggesting potential pressures on net asset values during that period. After March 2020, equity values recovered steadily, fluctuating but generally increasing from just above 5.6 billion USD to over 7.2 billion USD by mid-2023. This recovery signals strengthening capital base or retained earnings accumulation over time.
- Debt to Equity Ratio
- The debt-to-equity ratio rose significantly in the first year, from 1.6 in March 2019 to a peak above 2.5 by March 2020, indicating increased leverage relative to equity. Subsequently, the ratio fluctuated around levels slightly above 2.0 throughout 2020 and most of 2021, reflecting stable relative leverage. From late 2021 onward, a consistent decline in this ratio is evident, falling to approximately 1.77 by June 2023. This trend coincides with falling debt and rising equity, pointing to an improved balance sheet leverage position.
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Debt to Equity (including Operating Lease Liability)
ONEOK Inc., debt to equity (including operating lease liability) calculation (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).
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
The analysis of the quarterly financial data reveals several notable trends in the company's capital structure and leverage ratios over the examined period.
- Total Debt (Including Operating Lease Liability)
- The total debt showed a general increasing trend from March 2019 through mid-2020, reaching a peak around the second quarter of 2020. From that point onwards, debt levels stabilized and then gradually declined starting in early 2021 through mid-2023. This decline in total debt suggests an effort to reduce financial leverage or repay obligations over recent periods.
- Total Shareholders’ Equity
- Shareholders’ equity demonstrated fluctuations but with an overall positive trajectory towards the end of the period. Initially, there was a decline up to early 2020, followed by some recovery and subsequent growth from 2021 onward. The increase in equity in the later periods indicates improvement in retained earnings or capital contributions enhancing the company's net worth.
- Debt to Equity Ratio (Including Operating Lease Liability)
- The debt-to-equity ratio climbed significantly during 2019 and early 2020, peaking around 2.57 in the first quarter of 2020, reflecting a period of increased leverage relative to equity. After this peak, the ratio started to decrease steadily, demonstrating improved balance sheet strength and reduced financial risk. By mid-2023, the ratio approached 1.78, considerably lower than its peak, indicating a more conservative leverage position.
Overall, the financial data suggest that after a phase of increased borrowing and higher leverage through 2019 and early 2020, there has been a consistent effort to deleverage and strengthen the equity base, resulting in a healthier capital structure and improved financial stability in recent years.
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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 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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) | ||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Capital, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.12 | 0.13 | 0.13 | 0.13 | 0.15 | 0.17 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.26 | 0.26 | 0.26 | 0.26 | 0.25 | 0.28 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.17 | 0.17 | 0.17 | 0.20 | 0.21 | 0.22 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
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 financial data indicates a fluctuating but generally stable debt profile over the observed periods. Total debt demonstrated an increasing trend from early 2019 through mid-2020, rising from approximately $10.3 billion to about $14.3 billion. Subsequently, total debt saw a gradual decline, descending to around $12.7 billion by mid-2023.
Total capital followed a broadly similar pattern, increasing from roughly $16.8 billion in early 2019 to a peak of approximately $20.5 billion by mid-2020. After that, it experienced minor fluctuations but mostly remained in the range of $19.6 billion to $20.4 billion, ending near $20 billion by mid-2023.
The debt to capital ratio, which measures leverage, rose from 0.62 in March 2019 to a high of 0.72 in March 2020, reflecting an increase in leverage during this period. Thereafter, the ratio gradually decreased to about 0.64 by June 2023, indicating a moderate reduction in leverage over the longer term. The ratio remained relatively stable, oscillating between 0.68 and 0.72 for much of the analyzed timeframe before trending downward toward more conservative levels.
Overall, the data reveals an initial period of increasing leverage and debt, likely due to strategic capital investment or market conditions in early 2020, followed by a period of deleveraging and stabilization. The company's capital structure remains moderately leveraged, with a clear effort to reduce debt levels in recent quarters while maintaining substantial capital investment.
- Total Debt Trends
- Increased steadily until mid-2020, followed by a gradual decline through mid-2023.
- Total Capital Trends
- Rose until mid-2020, then fluctuated mildly, ending near peak levels.
- Debt to Capital Ratio
- Reached a peak of 0.72 in early 2020, then consistently decreased to 0.64 by mid-2023.
- Leverage Insights
- Indicates higher leverage during early 2020 with a gradual move toward reduced financial risk in subsequent periods.
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Debt to Capital (including Operating Lease Liability)
ONEOK Inc., debt to capital (including operating lease liability) calculation (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).
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
- Debt Levels
- The total debt (including operating lease liability) increased steadily from March 2019 through June 2020, rising from approximately $10.3 billion to $14.4 billion. Following this peak, the debt level remained relatively stable through the end of 2021, fluctuating slightly around $13.7 to $14.3 billion. From 2022 onwards, there is a gradual decline in total debt, reaching about $12.8 billion by June 2023.
- Total Capital
- Total capital (including operating lease liability) showed a consistent upward trend from March 2019 to June 2020, growing from approximately $16.8 billion to $20.6 billion. After peaking around this level in mid-2020, total capital experienced some fluctuations but remained mostly stable, hovering between $19.7 billion and $20.4 billion through mid-2023.
- Debt to Capital Ratio
- The debt to capital ratio increased significantly from 0.62 in March 2019 to 0.72 by March 2020, indicating a rise in leverage during this period. From mid-2020 onwards, this ratio stabilized around 0.70-0.71 through the end of 2021 before gradually decreasing to 0.64 by June 2023. This reduction suggests a modest deleveraging trend in the most recent periods.
- Overall Trends and Insights
- The company’s financial leverage increased notably during the early part of the timeline, likely reflecting increased borrowing or financial obligations. Following this increase, the leverage stabilized for over a year before beginning a gradual decline. The concurrent stability and slight decrease in total capital suggest the company's efforts to manage its financial structure, reducing debt levels while maintaining capital. The reduction in the debt to capital ratio in recent quarters signifies improved balance sheet strength and potentially lower financial risk.
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Debt to Assets
ONEOK Inc., debt to assets calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | ||||||
| Short-term borrowings | —) | —) | —) | 901) | —) | 78) | —) | —) | —) | —) | —) | —) | —) | —) | 220) | —) | —) | —) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Debt to Assets, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 0.09 | 0.09 | 0.09 | 0.09 | 0.10 | 0.12 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 0.18 | 0.18 | 0.18 | 0.18 | 0.18 | 0.20 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 0.11 | 0.11 | 0.11 | 0.12 | 0.13 | 0.13 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
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
- Over the examined period, total debt exhibited an overall upward trend from just above $10 billion to a peak around $14 billion by early 2020. Following this peak, a gradual decline in debt levels is observable, with debt decreasing steadily through 2021 and 2022, reaching approximately $12.7 billion by mid-2023. This reduction suggests a concerted effort to deleverage the balance sheet after a period of debt accumulation during 2019 and early 2020.
- Total Assets
- Total assets grew consistently over the timeframe, increasing from approximately $18.9 billion in early 2019 to a maximum near $24.5 billion in mid-2022. Thereafter, asset levels plateaued and showed slight decreases in 2023, ending around $24 billion. This trend reflects steady asset base expansion, likely driven by investments or asset appreciation, followed by stabilization in the most recent quarters.
- Debt to Assets Ratio
- The debt to assets ratio rose from 0.54 in early 2019 to a high of 0.64 around the first quarter of 2020, indicating an increasing proportion of debt relative to total assets during this period. Post-peak, the ratio steadily declined through 2021, 2022, and into 2023, lowering to approximately 0.53. This trend aligns with the reduction in total debt coupled with the growth and stabilization of total assets, signifying improved leverage and potentially stronger financial stability.
- Overall Analysis
- The data indicates that after a phase of debt accumulation culminating in early 2020, there has been a deliberate reduction in leverage, as supported by both the declining total debt values and the decreasing debt to assets ratio. Concurrently, the asset base has expanded and remained relatively stable since mid-2022, implying sustained capitalization. The combination of these trends points to a strategic shift toward strengthening the financial structure through debt management and asset growth.
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Debt to Assets (including Operating Lease Liability)
ONEOK Inc., debt to assets (including operating lease liability) calculation (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).
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
- Total Debt (including operating lease liability)
- Over the examined quarters, total debt demonstrated an overall upward trajectory from early 2019 through mid-2020, rising from approximately $10.3 billion to nearly $14.4 billion. This increase suggests a phase of heightened borrowing or refinancing activities. Subsequently, from mid-2020 onward, debt levels generally stabilized, with minor fluctuations around the $14 billion mark until late 2021. Starting in early 2022, there is a discernible gradual reduction in total debt, declining steadily to about $12.8 billion by mid-2023. This downward trend indicates a possible deleveraging strategy or repayment focus in recent periods.
- Total Assets
- Total assets showed consistent growth from about $18.9 billion in the first quarter of 2019 to a peak near $24.5 billion in mid-2022. This represents an increase of nearly 30%, reflective of asset acquisitions, capital investments, or revaluation impacts. After reaching this peak, total assets experienced a slight decrease, settling around $24 billion by mid-2023. Despite this minor contraction, the asset base remained significantly higher than the initial period, indicating sustained expansion over the full timeframe.
- Debt to Assets Ratio (including operating lease liability)
- The debt to assets ratio began at approximately 0.54 in early 2019, rising to a maximum level near 0.65 in the first half of 2020. This increase coincides with the period of increased debt and suggests a heavier leverage position relative to total assets. From mid-2020 onward, the ratio showed a steady decline, dropping to around 0.53 by mid-2023. This downward movement reflects the combined effects of debt reduction and relatively stable or growing asset values, resulting in an improved leverage profile and potentially lower financial risk.
- Summary Insights
- The observed financial data illustrate a period of elevated borrowing during 2019-2020, possibly linked to strategic capital requirements or external market conditions. Following this peak in indebtedness, the company undertook measures to reduce total debt, while expanding and maintaining its asset base. Consequently, the debt to assets ratio improved substantially in the latter years, suggesting enhanced financial stability and potentially increased creditworthiness. This trend indicates a shift towards a more conservative capital structure after a phase of leverage buildup.
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Financial Leverage
ONEOK Inc., financial leverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | ||||||
| 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) | ||||||
| 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Financial Leverage, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 1.59 | 1.60 | 1.62 | 1.64 | 1.68 | 1.70 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 1.89 | 1.91 | 1.95 | 1.93 | 1.87 | 1.90 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 1.82 | 1.86 | 1.89 | 1.99 | 2.07 | 2.10 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
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 demonstrated an overall upward trend from the beginning of the period through mid-2022, rising from approximately $18.9 billion to around $24.5 billion. This increase appears steady with minor fluctuations. Towards the end of the period, from late 2022 into mid-2023, total assets showed a slight decline, decreasing to about $24.0 billion.
- Total ONEOK Shareholders’ Equity
- Shareholders’ equity experienced moderate volatility. Initially, equity decreased in the first year, dropping from approximately $6.4 billion to around $5.6 billion by early 2020. From mid-2020 onwards, the equity figures began to recover and showed gradual growth, reaching $7.2 billion by mid-2023. This upward trend in equity after 2020 suggests an improvement in the company’s net asset base.
- Financial Leverage
- The financial leverage ratio increased noticeably from 2.94 at the start of 2019 to a peak of approximately 4.09 in late 2021. This indicates a rising reliance on debt relative to equity during this period. After peaking, leverage trends show a consistent decline through 2022 and into mid-2023, falling to about 3.33. This reduction in leverage suggests a strengthening equity position or reduction in debt levels relative to equity.
- Overall Analysis
- The period under analysis shows growth in total assets with some recent stability or slight decline. Shareholders’ equity initially contracted but recovered and expanded later, which correlates with the decline in financial leverage after its peak. The company’s capital structure appears to have shifted towards lower leverage in recent periods, indicating a potential focus on reducing financial risk or improving the equity-to-debt balance.
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Interest Coverage
ONEOK Inc., interest coverage calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ 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) | ||||||
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||
| Add: Income tax expense | 145) | 330) | 142) | 132) | 131) | 122) | 130) | 122) | 110) | 122) | 95) | 107) | 43) | (55) | 98) | 97) | 99) | 78) | ||||||
| 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) | ||||||
| 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) | ||||||
| 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 | ||||||
| Benchmarks | ||||||||||||||||||||||||
| Interest Coverage, Competitors2 | ||||||||||||||||||||||||
| Chevron Corp. | 87.36 | 102.29 | 97.27 | 86.49 | 68.50 | 44.87 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| ConocoPhillips | 28.69 | 33.08 | 36.07 | 33.30 | 28.10 | 22.60 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
| Exxon Mobil Corp. | 85.62 | 108.93 | 94.68 | 88.00 | 68.10 | 42.27 | — | — | — | — | — | — | — | — | — | — | — | — | ||||||
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).
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.
- EBIT Trends
- Earnings before interest and tax (EBIT) demonstrated relatively stable performance from early 2019 through the end of 2019, with values consistently around the mid-500 million USD range. However, a significant decline is observed in the first quarter of 2020, with EBIT turning negative to -57 million USD, likely indicating a challenging period. Subsequently, EBIT recovered sharply starting from the second quarter of 2020, rising progressively each quarter. From 2021 onwards, EBIT showed a solid upward trend, culminating in a substantial peak of 1,545 million USD in the first quarter of 2023, more than doubling compared to earlier periods. This peak is followed by a moderate decline but still maintains elevated EBIT levels around 793 million USD in the second quarter of 2023.
- Interest Expense Trends
- Interest expense, net of capitalized interest, showed a gradual increase from 115 million USD in the first quarter of 2019 to a peak of 219 million USD in the second quarter of 2020, corresponding with the period of EBIT decline. After this peak, interest expense generally decreased and stabilized in the range of approximately 166 to 186 million USD from late 2020 through mid-2023. The reduction following the 2020 peak suggests effective management or refinancing efforts to lower interest costs during the recovery phase.
- Interest Coverage Ratio Trends
- The interest coverage ratio started near 4.4 in early 2019, indicating a healthy buffer to meet interest obligations. This ratio declined sharply during 2020, reaching a low of approximately 2.13 in the fourth quarter of 2020, mirroring the drop in EBIT and increase in interest expense, signaling increased financial risk or reduced earnings cushion. From 2021 onward, the interest coverage ratio improved steadily, rising above 3.7 by the end of 2021 and continuing an upward trajectory to reach about 5.69 by mid-2023. This reflects a strengthening ability to cover interest expenses, driven predominantly by higher EBIT and controlled interest expense.
- Overall Financial Performance Insights
- The data depicts a period of significant stress in early 2020, likely due to adverse external or operational factors, as evidenced by the EBIT plunge and rising interest expenses. The company subsequently demonstrated strong recovery and growth in earnings, leading to improved financial stability as seen in a robust interest coverage ratio. The stabilizing interest expenses alongside growing EBIT have enhanced the company’s capacity to service debt and manage financial obligations effectively. This positive trend suggests improved operational efficiency and possibly favorable market conditions or strategic financial management post-2020.
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