Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Long-term Activity Ratios (Summary)
ONEOK Inc., long-term (investment) activity 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).
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio experienced a decline from 0.85 in 2018 to a low of 0.45 in 2020, indicating a decrease in asset utilization over this period. Subsequently, the ratio improved significantly to 0.86 in 2021 and further increased to 1.12 by the end of 2022, reflecting enhanced efficiency in generating sales from fixed assets.
- Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)
- This metric closely mirrors the net fixed asset turnover trend, declining from 0.85 in 2018 to 0.44 in 2020, followed by a recovery to 0.85 in 2021 and a further rise to 1.12 in 2022. The consistency between these two measures suggests that the impact of operating leases on asset turnover remained stable, and improvements in asset management were realized through both owned and leased assets.
- Total Asset Turnover
- Total asset turnover declined from 0.69 in 2018 to 0.37 by 2020, indicating a reduction in overall asset efficiency during this period. Similar to net fixed asset turnover, total asset turnover rebounded thereafter, increasing to 0.7 in 2021 and 0.92 by 2022, signaling a return to stronger operational efficiency and better utilization of the total asset base.
- Equity Turnover
- Equity turnover showed a downward trend from 1.91 in 2018 to 1.41 in 2020, suggesting slower sales generation per unit of equity during these years. However, an accelerated improvement was observed beginning in 2021, with the ratio rising sharply to 2.75, and further increasing to 3.45 in 2022. This significant growth implies a more effective use of equity in driving revenue, which may reflect improved financial leverage or operational performance.
Net Fixed Asset Turnover
ONEOK Inc., net fixed asset turnover 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) | ||||||
| Revenues | 22,386,892) | 16,540,309) | 8,542,242) | 10,164,367) | 12,593,196) | |
| Net property, plant and equipment | 19,952,526) | 19,319,874) | 19,154,928) | 18,348,685) | 14,766,651) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 1.12 | 0.86 | 0.45 | 0.55 | 0.85 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.64 | 1.06 | 0.60 | — | — | |
| ConocoPhillips | 1.21 | 0.71 | 0.47 | — | — | |
| Exxon Mobil Corp. | 1.95 | 1.28 | 0.78 | — | — | |
| Occidental Petroleum Corp. | 0.63 | 0.43 | 0.27 | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.59 | 1.03 | 0.63 | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 1.63 | 1.07 | 0.67 | — | — | |
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
Net fixed asset turnover = Revenues ÷ Net property, plant and equipment
= 22,386,892 ÷ 19,952,526 = 1.12
2 Click competitor name to see calculations.
- Revenues
- Revenues exhibited a fluctuating trend over the five-year period. After a decline from approximately 12.6 billion in 2018 to 8.5 billion in 2020, revenues experienced a significant recovery and growth, reaching about 22.4 billion by the end of 2022. This indicates a strong rebound and expansion in the most recent years, with the revenue almost doubling from 2020 to 2022.
- Net Property, Plant and Equipment
- The net property, plant, and equipment values steadily increased throughout the period. Starting at nearly 14.8 billion in 2018, the investment in these assets grew consistently every year, reaching close to 19.95 billion by the end of 2022. This steady growth suggests ongoing capital expenditure or asset acquisition, indicative of expansion or modernization efforts within the company's operations.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio, which measures efficiency in utilizing fixed assets to generate revenue, showed variability. It decreased from 0.85 in 2018 to a low of 0.45 in 2020, reflecting reduced efficiency during the earlier years possibly due to declining revenues or underutilization of assets. However, the ratio improved significantly in 2021 and further in 2022, reaching 1.12, surpassing the initial 2018 level. This progression signals an enhanced ability to leverage fixed assets effectively to generate higher revenues in the latter years.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
ONEOK Inc., net fixed asset turnover (including operating lease, right-of-use asset) 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) | ||||||
| Revenues | 22,386,892) | 16,540,309) | 8,542,242) | 10,164,367) | 12,593,196) | |
| Net property, plant and equipment | 19,952,526) | 19,319,874) | 19,154,928) | 18,348,685) | 14,766,651) | |
| Assets, operating leases (located in Other assets) | 82,838) | 89,558) | 100,154) | 15,147) | —) | |
| Net property, plant and equipment (including operating lease, right-of-use asset) | 20,035,364) | 19,409,432) | 19,255,082) | 18,363,832) | 14,766,651) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 1.12 | 0.85 | 0.44 | 0.55 | 0.85 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Chevron Corp. | 1.59 | 1.03 | 0.59 | — | — | |
| ConocoPhillips | 1.20 | 0.70 | 0.46 | — | — | |
| Exxon Mobil Corp. | 1.89 | 1.24 | 0.76 | — | — | |
| Occidental Petroleum Corp. | 0.62 | 0.43 | 0.27 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.55 | 1.01 | 0.62 | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 1.58 | 1.04 | 0.65 | — | — | |
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
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenues ÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= 22,386,892 ÷ 20,035,364 = 1.12
2 Click competitor name to see calculations.
- Revenues
- The revenues exhibited a fluctuating pattern over the reported periods. Initially, revenues decreased significantly from approximately 12.6 billion USD in 2018 to about 8.5 billion USD in 2020. However, this trend reversed sharply with revenues rising to approximately 16.5 billion USD in 2021 and continuing to increase to nearly 22.4 billion USD in 2022. This indicates a strong recovery and growth phase following the initial decline.
- Net Property, Plant and Equipment (including operating lease, right-of-use asset)
- The net value of property, plant, and equipment steadily increased throughout the period. Starting from roughly 14.8 billion USD in 2018, it grew to about 20.0 billion USD by the end of 2022. This continuous rise suggests ongoing investment in long-term assets and possibly expansions or upgrades in operational capacity.
- Net Fixed Asset Turnover (including operating lease, right-of-use asset)
- The asset turnover ratio demonstrated considerable variability. It began at 0.85 in 2018, dropped substantially to a low of 0.44 in 2020, reflecting reduced efficiency or lower revenue generation relative to asset base. Subsequently, the ratio rebounded to 0.85 in 2021 and further improved to 1.12 in 2022, signaling enhanced utilization of fixed assets in generating revenues during the latter years.
Total Asset Turnover
ONEOK Inc., total asset turnover 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) | ||||||
| Revenues | 22,386,892) | 16,540,309) | 8,542,242) | 10,164,367) | 12,593,196) | |
| Total assets | 24,379,094) | 23,621,613) | 23,078,754) | 21,812,121) | 18,231,671) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.92 | 0.70 | 0.37 | 0.47 | 0.69 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Chevron Corp. | 0.91 | 0.65 | 0.39 | — | — | |
| ConocoPhillips | 0.84 | 0.51 | 0.30 | — | — | |
| Exxon Mobil Corp. | 1.08 | 0.82 | 0.54 | — | — | |
| Occidental Petroleum Corp. | 0.50 | 0.35 | 0.22 | — | — | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.94 | 0.68 | 0.43 | — | — | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.93 | 0.67 | 0.44 | — | — | |
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
Total asset turnover = Revenues ÷ Total assets
= 22,386,892 ÷ 24,379,094 = 0.92
2 Click competitor name to see calculations.
The financial data indicates significant fluctuations in revenues and operational efficiency over the analyzed periods, alongside a steady increase in total assets.
- Revenues
- Revenues show a downward trend from 2018 to 2020, decreasing from approximately 12.6 billion USD to around 8.5 billion USD. However, a substantial recovery is evident thereafter, with revenues surging to about 16.5 billion USD in 2021 and further increasing to approximately 22.4 billion USD by the end of 2022. This pattern suggests an initial period of declining sales or operational challenges, followed by a marked growth phase.
- Total Assets
- Total assets consistently grew over the five-year period, rising from approximately 18.2 billion USD at the end of 2018 to nearly 24.4 billion USD by the end of 2022. The growth, while steady, slightly decelerated in the later years but still reflects ongoing investment or asset accumulation within the company.
- Total Asset Turnover Ratio
- The total asset turnover ratio, which measures how efficiently the company utilizes its assets to generate revenues, exhibits notable variability. It declined from 0.69 in 2018 to 0.37 in 2020, indicating reduced efficiency during this time, likely correlated with the revenue decline. Subsequently, the ratio rebounded sharply to 0.7 in 2021 and further increased to 0.92 in 2022, signaling improved asset utilization and operational effectiveness in recent years.
Overall, the data reflects a period of contraction followed by a strong recovery and improved operational efficiency. The growing asset base supports increasing revenues in the latter years, while the enhanced asset turnover ratio suggests more effective management of resources and possibly stronger market conditions or successful strategic initiatives.
Equity Turnover
ONEOK Inc., equity turnover 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) | ||||||
| Revenues | 22,386,892) | 16,540,309) | 8,542,242) | 10,164,367) | 12,593,196) | |
| Total ONEOK shareholders’ equity | 6,493,885) | 6,015,163) | 6,042,398) | 6,225,951) | 6,579,543) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 3.45 | 2.75 | 1.41 | 1.63 | 1.91 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Chevron Corp. | 1.48 | 1.12 | 0.72 | — | — | |
| ConocoPhillips | 1.64 | 1.01 | 0.63 | — | — | |
| Exxon Mobil Corp. | 2.04 | 1.64 | 1.14 | — | — | |
| Occidental Petroleum Corp. | 1.22 | 1.28 | 0.96 | — | — | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.73 | 1.35 | 0.92 | — | — | |
| Equity Turnover, Industry | ||||||
| Energy | 1.73 | 1.36 | 0.95 | — | — | |
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
Equity turnover = Revenues ÷ Total ONEOK shareholders’ equity
= 22,386,892 ÷ 6,493,885 = 3.45
2 Click competitor name to see calculations.
- Revenues
- The revenues demonstrate a fluctuating trend over the five-year period. There is a decline from 12,593,196 thousand US dollars in 2018 to 8,542,242 thousand US dollars in 2020, reaching the lowest point in this span. Subsequently, revenues sharply increase in 2021 to 16,540,309 thousand US dollars and continue rising significantly to 22,386,892 thousand US dollars in 2022. This indicates a strong recovery and growth in the latter part of the period.
- Total ONEOK shareholders’ equity
- Equity shows a gradual decline from 6,579,543 thousand US dollars in 2018 to 6,042,398 thousand US dollars in 2020. Following this period, equity remains relatively stable with only minor fluctuations, registering 6,015,163 thousand US dollars in 2021 and a modest rise to 6,493,885 thousand US dollars in 2022. Overall, equity presents a slight downward trend in the initial years, stabilizing thereafter.
- Equity turnover
- The equity turnover ratio declines from 1.91 in 2018 to 1.41 in 2020, aligning with the reduction in revenues during this timeframe. However, the ratio then rapidly increases, reaching 2.75 in 2021 and further 3.45 in 2022. This increase suggests a more efficient utilization of equity to generate revenues in the latter years, coinciding with the substantial revenue growth.