ONEOK Inc. (NYSE:OKE)

The financial data reveals notable fluctuations and trends over the five-year period under review. The company's efficiency in utilizing its assets, as indicated by the reported and adjusted total asset turnover ratios, declines from 2018 through 2020, reaching a low in 2020 before experiencing a significant recovery and improvement by 2022. This suggests an initial reduction in asset productivity, followed by enhanced operational efficiency in the later years.

Regarding capital structure, both reported and adjusted debt to equity ratios show an increasing trend from 2018 to 2020, indicating heightened leverage. However, from 2021 onwards, there is a gradual decline, reflecting a move towards deleveraging or a stronger equity base relative to debt. This pattern aligns with the reported and adjusted debt to capital ratios, which remain relatively stable but display a slight decrease in the later years, corroborating the trend of reduced reliance on debt financing.

Financial leverage ratios display an increase from 2018 through 2021, with a peak in 2021, followed by a decrease in 2022. The adjusted figures consistently show lower leverage compared to the reported ones, but both follow the same trajectory. This indicates that while leverage intensified up to 2021, measures were taken to moderate it in the most recent year.

The profitability indicators present mixed dynamics. The reported net profit margin declines sharply in 2020, followed by modest recovery, yet remaining below the 2019 level by 2022. In contrast, adjusted net profit margin maintains higher percentages throughout, with a notable rebound in 2021 and a slight decline in 2022. This discrepancy suggests that adjusted figures account for items impacting comparability and may better reflect underlying profitability trends.

Return on equity (ROE) shows a similar pattern: a marked decrease in 2020, succeeded by strong growth in 2021 and 2022, reaching the highest levels in the period analyzed. Adjusted ROE metrics present a somewhat smoother trend, reinforcing the observed improvements in shareholder returns post-2020 downturn. Return on assets (ROA) follows this pattern as well, with a drop in 2020 and subsequent increases, showing enhanced asset profitability in the most recent years.

Overall, the data indicates a period of operational and financial challenges peaking in 2020, likely influenced by external factors, followed by recovery and strengthening across multiple financial dimensions. Improvements in asset efficiency, reduced leverage, and enhanced profitability and returns to equity holders characterize the later years, suggesting effective management responses and a more favorable operating environment.

Revenues

The revenue figures demonstrate a fluctuating pattern over the five-year period. From 2018 to 2020, revenues declined steadily, dropping from approximately 12.6 billion USD in 2018 to about 8.5 billion USD in 2020. However, a marked recovery is observed in 2021, with revenues nearly doubling from the previous year to 16.5 billion USD. This upward momentum continued into 2022, reaching approximately 22.4 billion USD, the highest value in the observed period.

Total Assets

Total assets show a consistent growth trend over the period, increasing from about 18.2 billion USD in 2018 to nearly 24.4 billion USD by the end of 2022. The asset base expanded steadily year over year, with no periods of decline, indicating ongoing investment or accumulation of assets.

Reported Total Asset Turnover

The asset turnover ratio, which measures efficiency in using assets to generate revenues, reflects a downward trend from 2018 to 2020. It decreased from 0.69 in 2018 to 0.37 in 2020, indicating reduced asset utilization efficiency. This metric sharply improved in 2021 to 0.7 and continued to increase in 2022, reaching 0.92, suggesting enhanced efficiency in leveraging assets to produce sales.

Adjusted Total Assets and Adjusted Total Asset Turnover

The values for adjusted total assets and adjusted total asset turnover closely mirror the total assets and reported turnover figures, respectively, indicating consistent adjustment criteria. Adjusted total assets increased steadily as did adjusted asset turnover, showing the same declining and recovering pattern over the years.

Overall Assessment

The data reveals a period of initial revenue contraction and declining asset efficiency from 2018 through 2020, likely reflecting operational challenges or market conditions. Beginning in 2021, a significant recovery is evident both in revenue growth and in improved asset turnover ratios, sustained into 2022. Concurrently, the company steadily increased its asset base each year, with recent years indicating better utilization of these assets to drive revenue growth.

Total Debt

The total debt increased significantly from 9.41 billion USD at the end of 2018 to a peak of approximately 14.26 billion USD in 2020. Subsequently, it declined slightly in 2021 and remained relatively stable in 2022 near 13.64 billion USD, indicating a reduction in debt load after reaching a high point in 2020.

Total ONEOK Shareholders’ Equity

Shareholders’ equity experienced a decline from about 6.58 billion USD in 2018 to approximately 6.04 billion USD in 2020 and 2021. However, a recovery trend was observed in 2022, with equity rising to nearly 6.49 billion USD, suggesting a stabilization or improvement in the company's net asset position.

Reported Debt to Equity Ratio

The reported debt to equity ratio followed an upward trend from 1.43 in 2018 to a peak of 2.36 in 2020, reflecting increased leverage. This ratio then decreased to 2.27 in 2021 and further to 2.10 in 2022, indicating a gradual reduction in financial risk related to debt relative to equity.

Adjusted Total Debt

Adjusted total debt mirrored the trend of reported total debt, increasing from approximately 9.43 billion USD in 2018 to about 14.36 billion USD in 2020 before decreasing to around 13.72 billion USD in 2022. This consistency underscores the significant debt accumulation followed by partial deleveraging.

Adjusted Total ONEOK Shareholders’ Equity

The adjusted shareholders’ equity showed a different pattern compared to the reported equity, rising from roughly 6.80 billion USD in 2018, slightly dipping in 2019 and 2020, then increasing steadily through 2021 and 2022 to reach approximately 8.23 billion USD. This suggests that, under adjusted measures, the company improved its equity base significantly over the period.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio also increased initially from 1.39 in 2018 to a high of 2.14 in 2020, followed by a decline to 1.92 in 2021 and a further drop to 1.67 in 2022. This decline reflects an improved capital structure and reduced leverage risk when considering adjusted measures.

Overall Summary

Across the period from 2018 to 2022, leverage increased substantially reaching peaks in 2020 in both reported and adjusted figures, with total debt rising more sharply than shareholders’ equity. Post-2020, there was a discernible effort to reduce leverage, as evidenced by declining debt levels alongside stabilizing or growing equity, particularly on an adjusted basis. The adjusted equity figures suggest a stronger capital position than reported figures alone, hinting at positive underlying asset adjustments or valuation approaches enhancing equity. The trends indicate a company that expanded leverage aggressively through 2020 but subsequently focused on strengthening its balance sheet and reducing financial risk.

The financial data reveals the company's leverage and capital structure trends over a five-year period from the end of 2018 through 2022. The analysis focuses on total debt, total capital, and their respective ratios, including adjusted figures, to gauge the company's financial position.

Total Debt and Capital

Total debt increased substantially from approximately $9.4 billion at the end of 2018 to a peak of about $14.26 billion in 2020. After 2020, it slightly decreased in 2021 and remained nearly stable through 2022 at around $13.64 billion. Total capital followed a similar upward trend, growing from roughly $15.99 billion in 2018 to just over $20.3 billion in 2020. Notably, total capital slightly declined in 2021 before edging higher again by 2022.

Debt to Capital Ratios (Reported)

The reported debt to capital ratio reflected increasing leverage from 0.59 in 2018 to a high of 0.70 in 2020, indicating that debt grew faster than overall capital during this period. From 2020 onward, the ratio showed a modest reduction, falling slightly to 0.68 by the end of 2022. This suggests a gradual moderation in reliance on debt financing relative to capital.

Adjusted Debt and Capital

The adjusted figures mirrored the trends in the reported data. Adjusted total debt rose from about $9.43 billion in 2018 to a maximum of approximately $14.36 billion in 2020, then decreased slightly each subsequent year, reaching around $13.72 billion in 2022. Adjusted total capital showed steady growth, rising from roughly $16.23 billion in 2018 to nearly $21.08 billion in 2020, followed by a plateau and further increase in later years, culminating in about $21.96 billion by 2022.

Adjusted Debt to Capital Ratios

The adjusted debt to capital ratio increased from 0.58 in 2018 to 0.68 in 2020, reflecting the rise in debt relative to capital. However, unlike the reported ratio, the adjusted ratio declined more noticeably in the subsequent years, falling to 0.63 by 2022. This pattern suggests that when adjustments are accounted for, the company's leverage decreased more significantly after 2020, indicating an improved balance between debt and capital resources.

Overall, the company's financial leverage demonstrated a clear increase leading up to 2020, corresponding with growth in total debt outpacing capital expansion. The period following 2020 evidences a stabilization and modest deleveraging trend, particularly visible in the adjusted ratios. This may reflect management's efforts to optimize the capital structure and reduce risk by gradually lowering the proportion of debt within its capital base.

The financial data reveals evolving trends in the company's asset base, equity position, and leverage ratios over the five-year period ending in 2022.

Total Assets

The total assets steadily increased from approximately $18.2 billion at the end of 2018 to $24.4 billion by the end of 2022. This reflects a consistent expansion in the asset base, with growth particularly notable between 2018 and 2019, and continuing a moderate upward trajectory in subsequent years.

Total Shareholders’ Equity (Reported)

The reported total shareholders’ equity displays a slight decline over the period, beginning at approximately $6.58 billion in 2018 and decreasing to about $6.49 billion by 2022. The equity showed a downward trend through 2021, reaching a low near $6.02 billion, before a modest recovery in 2022.

Reported Financial Leverage

Reported financial leverage increased significantly from 2.77 in 2018 to a peak of 3.93 in 2021, indicating a rising level of debt relative to equity. In 2022, this leverage ratio decreased slightly to 3.75, suggesting some de-leveraging or an equity base improvement relative to liabilities.

Adjusted Total Assets

The adjusted total assets closely mirror the trend of the reported total assets, starting at about $18.25 billion in 2018 and increasing steadily to $24.4 billion in 2022, reflecting consistent asset growth when adjustments are taken into account.

Adjusted Total Shareholders’ Equity

In contrast to the reported equity, adjusted shareholders’ equity increased from roughly $6.80 billion in 2018 to $8.23 billion in 2022. This steady increase suggests that when adjustments are factored in, the equity position shows strengthening over time. The growth accelerated notably between 2021 and 2022.

Adjusted Financial Leverage

The adjusted financial leverage ratio rose from 2.68 in 2018 to 3.44 in 2020, followed by a decline to 2.96 in 2022. This pattern indicates an initial increase in leverage, but the company improved its leverage position in the last two years, reflecting a combination of equity growth and stable asset expansion.

Overall, while the reported equity figures show a slight decline and higher leverage ratios in recent years, the adjusted figures suggest a strengthening in the equity base and a corresponding reduction in leverage after 2020. The company has steadily expanded its asset base throughout the period, and the adjustments provide a more positive view of the equity and leverage trends, implying potential changes in accounting treatments or reclassifications that impact reported financial metrics.

Net Income

The net income attributable to ONEOK shows a fluctuating trend over the five-year period. Starting at approximately 1.15 billion USD in 2018, it increased to about 1.28 billion USD in 2019, followed by a significant decline in 2020 to nearly 613 million USD. This was then succeeded by a strong recovery in 2021 reaching approximately 1.50 billion USD, and further growth in 2022 to about 1.72 billion USD. Overall, the net income more than doubled from its lowest point in 2020 by 2022.

Revenues

Revenues presented a volatile pattern over the years. Initially, revenues declined from around 12.59 billion USD in 2018 to 8.54 billion USD in 2020, reflecting a diminishing trend during the initial period. However, a significant recovery occurred in 2021, with revenues surging to approximately 16.54 billion USD, and continued growth into 2022 reaching about 22.39 billion USD, marking a notable expansion in the company’s top line.

Reported Net Profit Margin

The reported net profit margin exhibited variability with a general downward trend in the latter years. Beginning at 9.15% in 2018, the margin peaked at 12.58% in 2019, dropped sharply to 7.17% in 2020, modestly recovered to 9.07% in 2021, but declined again to 7.69% in 2022. This indicates that despite revenue growth, profitability relative to sales experienced pressures and did not maintain the earlier peaks.

Adjusted Net Income

Adjusted net income followed a trajectory similar to reported net income but with somewhat higher absolute values. It started at about 1.55 billion USD in 2018, remained relatively stable at 1.47 billion USD in 2019, then declined sharply to around 622 million USD in 2020. A robust recovery took place in 2021, with adjusted net income rising to over 2.05 billion USD, and further improvement continued in 2022 to roughly 2.55 billion USD. The adjusted figures reflect underlying profitability excluding certain items and emphasize a strong rebound after 2020.

Adjusted Net Profit Margin

The adjusted net profit margin mirrored fluctuations seen in the reported margin but at consistently higher levels, indicating a more favorable profitability when adjusting for non-recurring effects. The margin increased from 12.34% in 2018 to a peak of 14.42% in 2019, then sharply fell to 7.28% in 2020. A substantial recovery followed with margins rising to 12.41% in 2021, though it declined somewhat to 11.38% in 2022. This suggests improved efficiency and profitability in the adjusted results, albeit with some erosion in the most recent year.

Net Income Trend

Net income attributable to the company showed a fluctuating pattern over the analyzed periods. It increased from 1,151,703 thousand USD in 2018 to 1,278,577 thousand USD in 2019, followed by a significant decline to 612,809 thousand USD in 2020. Subsequently, it recovered strongly in 2021 and 2022, reaching 1,499,706 thousand USD and 1,722,221 thousand USD respectively, indicating resilience and growth after the 2020 downturn.

Total Shareholders’ Equity

Total shareholders’ equity experienced a slight downward trend from 6,579,543 thousand USD in 2018 to 6,015,163 thousand USD in 2021, followed by a recovery to 6,493,885 thousand USD in 2022. This pattern suggests some contraction in equity during the middle periods, with a rebound in the last recorded year.

Reported Return on Equity (ROE)

The reported ROE displayed variability over the years. It increased from 17.5% in 2018 to 20.54% in 2019, then dropped sharply to 10.14% in 2020, consistent with the decline in net income. Afterward, ROE improved markedly, reaching 24.93% in 2021 and further rising to 26.52% in 2022, indicating enhanced profitability relative to shareholders’ equity.

Adjusted Net Income

Adjusted net income followed a similar trajectory to reported net income, starting at 1,554,434 thousand USD in 2018 and slightly decreasing to 1,465,545 thousand USD in 2019. It then declined steeply to 622,090 thousand USD in 2020. In contrast to the reported figures, adjusted net income increased substantially in 2021 and 2022, reaching 2,051,861 thousand USD and 2,548,735 thousand USD respectively, reflecting strong operational performance when adjusted for certain items.

Adjusted Total Shareholders’ Equity

Adjusted shareholders' equity remained relatively stable from 2018 through 2020, ranging between approximately 6,719,095 thousand USD and 6,762,014 thousand USD. From 2021, it showed a consistent upward trend, rising to 7,181,853 thousand USD and 8,232,410 thousand USD in 2022. This sustained growth suggests strengthening equity base under adjusted conditions.

Adjusted Return on Equity (ROE)

The adjusted ROE mirrored the general pattern of reported ROE but with more pronounced changes. It started at 22.86% in 2018 and dipped slightly to 21.67% in 2019, before plunging to 9.27% in 2020. Thereafter, it demonstrated substantial improvement, reaching 28.57% in 2021 and peaking at 30.96% in 2022, underscoring a significant enhancement in profitability based on adjusted earnings and equity.

The financial data reveals several notable trends over the five-year period ending December 31, 2022. Net income attributable to the company exhibits a fluctuating trajectory with an initial increase from 1,151,703 thousand US dollars in 2018 to 1,278,577 thousand in 2019, followed by a significant decline to 612,809 thousand in 2020. This drop potentially signals a challenging year. However, the net income rebounds strongly in subsequent years, reaching 1,499,706 thousand in 2021 and further increasing to 1,722,221 thousand in 2022, indicating recovery and growth.

Total assets show a consistent upward trend throughout the period, increasing from 18,231,671 thousand US dollars in 2018 to 24,379,094 thousand in 2022. This steady growth suggests ongoing asset acquisition or appreciation, reflecting expansion or reinvestment within the company.

Reported return on assets (ROA) mirrors the net income pattern, starting at 6.32% in 2018, slightly decreasing to 5.86% in 2019, then falling sharply to 2.66% in 2020. It recovers thereafter to 6.35% in 2021 and improves further to 7.06% in 2022, pointing to enhanced efficiency or profitability relative to total assets following the downturn.

Adjusted net income follows a parallel pattern to reported net income but with higher absolute values. Starting from 1,554,434 thousand US dollars in 2018, it declines to 1,465,545 thousand in 2019 and sharply drops to 622,090 thousand in 2020. The subsequent years show strong improvement, climbing to 2,051,861 thousand in 2021 and further to 2,548,735 thousand in 2022. This suggests that non-recurring adjustments or extraordinary items significantly impacted the adjusted figures, with a pronounced rebound in adjusted profitability in the latter years.

Adjusted total assets align with total assets, rising continuously from 18,250,173 thousand in 2018 to 24,379,094 thousand in 2022, supporting the observation of asset base expansion.

Adjusted ROA demonstrates a similar volatile trend as reported ROA but with generally higher values. It decreases from 8.52% in 2018 to 6.72% in 2019 and further down to 2.7% in 2020. Following this low point, it rebounds markedly to 8.69% in 2021 and then to an even stronger 10.45% in 2022. This pattern indicates that the company’s operational efficiency or returns on assets, when excluding certain items, experienced significant impact in 2020 but subsequently recovered to levels exceeding those of the initial years.

Overall, the data portrays a company that faced considerable challenges in 2020, as reflected by declines across income and return metrics. However, it demonstrates a robust recovery in 2021 and 2022, with enhancing profitability and sustained asset growth. The consistent increase in total and adjusted assets suggests ongoing investment or asset value growth during the entire period. The return measures indicate improved profitability on asset bases after the temporary downturn, reaching their highest observed levels in the last year presented.