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).
A comprehensive review of the long-term activity ratios reveals a distinct U-shaped trend across all metrics from 2018 to 2022. A period of declining asset and equity efficiency occurred between 2018 and 2020, followed by a robust recovery and subsequent acceleration in productivity through 2022.
- Net Fixed Asset Turnover
- The efficiency of fixed asset utilization experienced a significant contraction, falling from 0.85 in 2018 to a low of 0.45 in 2020. However, a sharp reversal occurred in 2021, with the ratio climbing to 0.86 and further increasing to 1.12 by the end of 2022. The inclusion of right-of-use assets yielded nearly identical results, indicating that operating leases did not materially alter the overall fixed asset productivity profile.
- Total Asset Turnover
- Total asset efficiency mirrored the trend of fixed assets, declining from 0.69 in 2018 to a nadir of 0.37 in 2020. A strong recovery phase followed, returning to 0.70 in 2021 and reaching a five-year peak of 0.92 in 2022. This suggests a marked improvement in the company's ability to generate revenue from its entire asset base following the 2020 trough.
- Equity Turnover
- Equity turnover exhibited the most aggressive growth trajectory during the recovery period. After declining from 1.91 in 2018 to 1.41 in 2020, the ratio surged to 2.75 in 2021 and peaked at 3.45 in 2022. This indicates a substantial increase in the efficiency of shareholder capital utilization, with the 2022 turnover rate being significantly higher than the pre-decline levels of 2018.
Overall, the synchronization of these ratios suggests a systemic impact on revenue generation capabilities during 2019 and 2020, followed by a period of heightened operational efficiency and optimized asset utilization starting in 2021.
AI Ask an analyst for more
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 | — | — | — | |
| ConocoPhillips | 1.21 | 0.71 | — | — | — | |
| Exxon Mobil Corp. | 1.95 | 1.28 | — | — | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.73 | 1.12 | — | — | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Energy | 1.77 | 1.15 | — | — | — | |
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.
The net fixed asset turnover ratio exhibits a U-shaped trajectory over the observed five-year period, characterized by a significant decline in asset efficiency between 2018 and 2020, followed by a robust recovery and expansion through 2022. This trend reflects a period of initial underutilization or misalignment between asset investment and revenue generation, which was subsequently corrected by a sharp increase in top-line growth.
- Revenue Performance
- Revenues experienced a notable contraction from 2018 to 2020, falling from approximately 12.59 billion US dollars to 8.54 billion US dollars. This downward trend was sharply reversed in 2021, with revenues jumping to 16.54 billion US dollars, and continuing to climb to 22.39 billion US dollars by the end of 2022.
- Asset Base Expansion
- Net property, plant, and equipment grew consistently throughout the period. The asset base increased from 14.77 billion US dollars in 2018 to 19.95 billion US dollars in 2022. The most aggressive expansion occurred between 2018 and 2019, after which the growth rate of the net fixed asset base stabilized.
- Net Fixed Asset Turnover Analysis
- The turnover ratio declined from 0.85 in 2018 to a low of 0.45 in 2020, driven by the simultaneous occurrence of falling revenues and rising fixed assets. This indicates a period of diminished operational efficiency regarding long-term investments. However, the ratio recovered to 0.86 in 2021 and reached a peak of 1.12 in 2022. The rapid improvement in the latter two years suggests that the company successfully leveraged its expanded asset base to generate significantly higher revenues, resulting in superior asset productivity compared to the start of the period.
AI Ask an analyst for more
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 | — | — | — | |
| ConocoPhillips | 1.20 | 0.70 | — | — | — | |
| Exxon Mobil Corp. | 1.89 | 1.24 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.68 | 1.09 | — | — | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Energy | 1.72 | 1.12 | — | — | — | |
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.
The analysis of net fixed asset turnover between 2018 and 2022 reveals a U-shaped performance trend, characterized by a significant contraction in asset efficiency followed by a robust recovery and expansion.
- Revenue Volatility and Asset Base Expansion
- Revenues experienced a notable decline between 2018 and 2020, falling from approximately 12.59 billion to 8.54 billion. During this same period, the net property, plant, and equipment base, including right-of-use assets, grew consistently, increasing from 14.77 billion in 2018 to 19.26 billion in 2020. This divergence—where the asset base expanded while revenue contracted—created a period of diminishing operational efficiency.
- Net Fixed Asset Turnover Performance
- The net fixed asset turnover ratio mirrored the revenue volatility, declining from 0.85 in 2018 to a low of 0.44 in 2020. This decline indicates that the company generated significantly less revenue per unit of fixed asset investment during the 2019-2020 window. A sharp reversal occurred in 2021, as the ratio returned to 0.85, before peaking at 1.12 by the end of 2022.
- Analysis of Asset Utilization Recovery
- The recovery in the turnover ratio was driven by a substantial surge in revenues during 2021 and 2022, which reached 22.39 billion. While the net fixed asset base continued to grow to 20.04 billion by 2022, the rate of revenue growth far exceeded the rate of asset accumulation. This resulted in a final turnover ratio that is 32% higher than the 2018 baseline, suggesting an overall improvement in the ability to leverage long-term investments to generate top-line growth.
AI Ask an analyst for more
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 | — | — | — | |
| ConocoPhillips | 0.84 | 0.51 | — | — | — | |
| Exxon Mobil Corp. | 1.08 | 0.82 | — | — | — | |
| Total Asset Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 0.99 | 0.71 | — | — | — | |
| Total Asset Turnover, Industry | ||||||
| Energy | 0.97 | 0.71 | — | — | — | |
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 period from 2018 to 2022 is characterized by a significant fluctuation in asset utilization efficiency, marked by a distinct decline followed by a robust recovery. The relationship between revenue generation and asset growth indicates a period of underutilization between 2019 and 2020, succeeded by a phase of aggressive revenue growth that substantially outpaced asset expansion.
- Revenue Trajectory
- Revenues experienced a notable downward trend from 2018, reaching a trough of approximately 8.54 billion US dollars by December 31, 2020. This decline was followed by a sharp reversal, with revenues increasing to 16.54 billion US dollars in 2021 and continuing to climb to 22.39 billion US dollars by the end of 2022.
- Asset Base Expansion
- Total assets demonstrated a consistent and steady upward trajectory throughout the analyzed period. Assets grew from 18.23 billion US dollars in 2018 to 24.38 billion US dollars in 2022. The most rapid expansion occurred between 2018 and 2020, which inversely correlated with the decline in revenues during those years.
- Total Asset Turnover Performance
- The total asset turnover ratio followed a U-shaped pattern, reflecting shifting operational efficiency. The ratio decreased from 0.69 in 2018 to a minimum of 0.37 in 2020, indicating a period where the asset base was not being effectively leveraged to generate sales. A strong recovery is observed in the subsequent two years, with the ratio ascending to 0.70 in 2021 and peaking at 0.92 in 2022. This indicates that by the end of the period, the company achieved its highest level of asset productivity, generating nearly one dollar of revenue for every dollar of assets held.
AI Ask an analyst for more
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 | — | — | — | |
| ConocoPhillips | 1.64 | 1.01 | — | — | — | |
| Exxon Mobil Corp. | 2.04 | 1.64 | — | — | — | |
| Equity Turnover, Sector | ||||||
| Oil, Gas & Consumable Fuels | 1.77 | 1.35 | — | — | — | |
| Equity Turnover, Industry | ||||||
| Energy | 1.76 | 1.36 | — | — | — | |
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
1 2022 Calculation
Equity turnover = Revenues ÷ Total ONEOK shareholders’ equity
= 22,386,892 ÷ 6,493,885 = 3.45
2 Click competitor name to see calculations.
The analysis of equity turnover from 2018 to 2022 reveals a period of initial contraction followed by a significant expansion in revenue-generating efficiency. While the capital base remained relatively stagnant, the substantial growth in top-line revenues in the latter years led to a marked increase in the equity turnover ratio.
- Revenue Trends
- A downward trend in revenues was observed from 2018 to 2020, with values decreasing from $12.59 billion to a low of $8.54 billion. This trajectory reversed sharply in 2021 and 2022, with revenues climbing to $16.54 billion and $22.39 billion, respectively. This rapid acceleration in the final two years represents a significant increase in operational scale compared to the 2020 trough.
- Shareholders' Equity Stability
- Total shareholders' equity exhibited minimal volatility throughout the analyzed period. The balance started at $6.58 billion in 2018, reached a minimum of $6.02 billion in 2021, and concluded at $6.49 billion in 2022. The consistency of the equity base indicates that the fluctuations in the turnover ratio were driven by operational performance rather than changes in the equity capital structure.
- Equity Turnover Performance
- The equity turnover ratio closely tracked the revenue cycle, declining from 1.91 in 2018 to 1.41 in 2020. A sharp recovery occurred in 2021, with the ratio rising to 2.75, and it further peaked at 3.45 in 2022. This progression demonstrates a substantial improvement in the efficiency with which the company utilized its equity to generate sales, effectively more than doubling the efficiency observed during the 2020 low.
AI Ask an analyst for more