Balance Sheet: Assets
The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.
Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.
ONEOK Inc., consolidated balance sheet: assets
US$ in thousands
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).
The financial data reveals several notable trends across the given periods. Overall, there is an upward movement in total assets, increasing steadily each year from approximately 18.2 billion in 2018 to 24.4 billion in 2022. This indicates growth in the company’s asset base over five years.
- Cash and Cash Equivalents
- The cash position exhibits substantial volatility. Starting at around $12 million in 2018, it surged dramatically to over $524 million in 2020 before falling back to $220 million in 2022. The spike in 2020 might reflect liquidity management strategies such as cash reserves buildup during uncertain periods.
- Accounts Receivable, Net
- Accounts receivable increased consistently, more than doubling from about $819 million in 2018 to approximately $1.53 billion in 2022. This trend suggests growing sales on credit or an expansion of business volume, although it could also imply extended collection periods.
- Inventory
- Inventory levels show fluctuations, peaking in 2019 at over $506 million, dipping significantly in 2020 to about $371 million, and rising back to roughly $581 million by 2021, maintaining that level in 2022. The dip in 2020 may have resulted from supply chain disruptions or demand contractions, with recovery seen thereafter.
- Commodity Imbalances and Other Current Assets
- Commodity imbalances decreased during 2019 and 2020 but then increased notably in 2021 and 2022, signaling potential operational or market shifts affecting commodity positions. Other current assets rose steadily, indicating an increase in short-term asset categories outside of standard receivables and inventory.
- Current Assets
- Current assets exhibit a clear upward trend, growing from about $1.4 billion in 2018 to nearly $2.55 billion in 2022, supporting increased liquidity and operational capacity.
- Net Property, Plant, and Equipment
- Investment in fixed assets consistently grew from roughly $14.8 billion in 2018 to just under $20 billion by 2022, signifying ongoing capital expenditures and asset base expansion, potentially positioning the company for future growth.
- Investments in Unconsolidated Affiliates
- There is a gradual decline in investments in unconsolidated affiliates, decreasing from approximately $969 million in 2018 to about $802 million in 2022, indicating divestitures, reduced stakes, or decreased valuations in associated entities.
- Goodwill and Net Intangible Assets
- Goodwill and intangible assets steadily decreased from $967 million to $753 million over the five years, suggesting possible amortization, impairments, or divestitures impacting these intangible asset values.
- Other Assets and Investments and Other Assets
- Other assets saw a sharp increase in 2020 but declined in subsequent years, while investments and other assets slightly declined over the period, together indicating shifting compositions or realizations in long-term asset categories.
- Noncurrent Assets
- The total noncurrent assets increased moderately from $16.8 billion in 2018 to $21.8 billion in 2022, supporting the growth reflected in property and equipment and indicating stable investment in long-term resources.
In summary, the company has experienced significant asset growth primarily driven by increases in property, plant, and equipment, accounts receivable, and current assets. Variability in cash holdings and declines in intangible assets and investments in affiliates suggest strategic adjustments in asset management and portfolio composition. Inventory and commodity balances reflect responsiveness to market or operational dynamics. Overall, the data points to expansion and investment in core operations while managing liquidity and asset quality aspects prudently.