ONEOK Inc. (NYSE:OKE)

Current Ratio

The current ratio demonstrates considerable variability across the observed periods. Initially, it registers below 1, fluctuating between 0.73 and 1.36 up to the end of 2020. A notable increase occurs in the first two quarters of 2020, peaking at 1.71 in June 2020, which indicates improved short-term liquidity during that period. However, this improvement is followed by a decline through 2021, where the ratio hovers below 1, suggesting a tightening of current assets relative to current liabilities. In 2022, the current ratio mostly remains under 1, reaching the lowest value of 0.67 in September. A recovery trend is observed in early 2023, rising above 1.0 to reach 1.23 by June, indicating a stronger liquidity position at that point.

Quick Ratio

The quick ratio follows a pattern broadly similar to the current ratio but at generally lower levels, reflecting more stringent liquidity. Early 2019 values show a steady increase, peaking at 1.22 in June 2020, consistent with the current ratio’s peak during that period. After mid-2020, the quick ratio declines through 2021 and remains below 0.65, indicating reduced immediate liquidity without inventory. In 2022, the quick ratio continues to remain subdued, generally below 0.55, with a slight upward movement observed in early 2023, reaching 0.84 in March before dipping to 0.74 in June. Overall, the quick ratio indicates less buffer in liquid assets excluding inventories compared to the current ratio.

Cash Ratio

The cash ratio exhibits the most pronounced fluctuations and generally remains at a relatively low level throughout the timeline. The ratio is near zero or minimal during much of 2019, and then rises sharply in early 2020, achieving a peak of 0.74 in June 2020. This peak corresponds with improved liquidity reflected in the other ratios during the same period. After the mid-2020 peak, the cash ratio declines significantly, reaching very low values in 2021 and 2022, at times near zero. Early 2023 shows some recovery with a rise to 0.31 in March 2023, followed by a drop again to 0.07 in June 2023. This pattern suggests limited availability of cash and cash equivalents relative to current liabilities for much of the period, punctuated by short intervals of strengthened cash positioning.

Current Assets

Current assets demonstrate a generally increasing trend from March 2019 through June 2022, with values rising from 1,343 million USD to a peak of 3,026 million USD. This growth indicates an accumulation or better management of liquid resources and assets expected to be converted to cash within a year. However, from December 2022 onward, a decline is noticeable, with current assets falling to 1,863 million USD by June 2023.

Current Liabilities

Current liabilities fluctuate significantly throughout the period. There is a sharp decline from December 2019 (2,020 million USD) to March 2020 (1,091 million USD), followed by a steady increase peaking at 4,139 million USD at September 2022. After this peak, liabilities drop notably, reaching 1,517 million USD by June 2023. This volatility suggests varying short-term obligations that might be influenced by operational or financial strategies, such as debt issuance or repayment cycles.

Current Ratio

The current ratio, which measures liquidity by dividing current assets by current liabilities, reflects considerable variability. It starts below 1.0 in early 2019, suggesting potential liquidity concerns. It improves significantly in 2020, reaching as high as 1.71 in June 2020, indicating a strong liquidity position during that period. However, the ratio then declines sharply in 2021, dropping to 0.75 by December, suggesting reduced liquidity. This downward trend reverses slightly starting in early 2023, improving to 1.23 by June 2023, pointing to restored short-term financial stability.

Overall Analysis

The data reflects a period marked by fluctuating liquidity and changing levels of current assets and liabilities. The increase in current assets through mid-2022 indicates improved asset availability, while the corresponding rise in liabilities suggests parallel increases in short-term obligations. The current ratio’s fluctuations imply that liquidity management underwent changes, with periods of strength in 2020 and early 2023 and constraints during 2019 and much of 2021. The decline in both current assets and liabilities after late 2022 may indicate a strategic reduction in working capital or adjustments in operational funding requirements.

The analysis of the quarterly financial data reveals several notable trends in liquidity and working capital management over the examined periods.

Total Quick Assets

Total quick assets exhibit considerable fluctuation throughout the timeframe. Initially, values increased from 841 million USD to a peak of 1,555 million USD by mid-2020, indicating an improvement in liquid assets available. Following this peak, total quick assets varied with some decreases observed, particularly a sharp decline to 1,129 million USD in June 2023 from highs above 1,900 million USD in prior quarters. This volatility suggests changes in the company's short-term liquid asset holdings or adjustments in asset composition.

Current Liabilities

Current liabilities show a generally increasing trend until late 2022, rising from 1,690 million USD in early 2019 to a significant high of 4,139 million USD in September 2022. Afterward, there is a tendency toward reduction, with liabilities falling to 1,517 million USD by June 2023. The initial rapid rise may reflect increased short-term obligations possibly related to operational demands, financing, or liabilities restructuring, while the subsequent decline could indicate liability management efforts or settling of short-term debts.

Quick Ratio

The quick ratio demonstrates variability that closely mirrors changes in quick assets and current liabilities. Starting from a low value of approximately 0.5 in early 2019, it increased to a peak above 1.2 by mid-2020, signifying a strong liquidity position during that period. Following this, the quick ratio generally declined, reaching lows around 0.42 by late 2022, indicating a weakening in the immediate liquidity coverage of current liabilities by quick assets. A partial rebound is seen in the latest periods, with values recovering to around 0.74 by mid-2023, implying a moderate restoration of liquidity.

Overall, these patterns suggest an initial strengthening of liquidity and quick asset position up to mid-2020, followed by increased current liabilities and a resulting decline in liquidity ratios. The late-stage improvements hint at corrective measures to enhance short-term financial stability. Monitoring these indicators is essential for assessing ongoing liquidity risk and operational flexibility.

Total Cash Assets

The total cash assets exhibited significant volatility throughout the observed periods. Starting at a high value early in 2019, there was a pronounced decline by mid-2019. Subsequently, fluctuations were noted with occasional sharp increases and decreases across quarters, with values never regaining the early 2019 peak. The overall trend suggests instability in cash holdings, culminating in relatively low cash asset levels in the latest periods analyzed.

Current Liabilities

Current liabilities demonstrated a general upward trajectory from early 2019 through late 2022, indicating a consistent increase in short-term obligations. The liabilities rose from levels around 1,600 million to beyond 4,100 million US dollars, peaking towards the end of the period under review. However, in the most recent quarters, a noticeable reduction in current liabilities was observed, signaling possible efforts to manage or reduce short-term debts.

Cash Ratio

The cash ratio, which measures liquidity by comparing cash assets to current liabilities, showed considerable fluctuation across the time frame. Early in the period, the ratio was very low, suggesting minimal cash coverage for liabilities. Midway, the ratio improved notably, reaching as high as 0.74, implying better liquidity conditions. However, following this peak, the ratio declined substantially and remained low, reflecting reduced liquidity despite the increasing current liabilities. The final quarters showed some recovery in liquidity, though still at modest levels compared to earlier highs.

Overall Analysis

The financial trends indicate challenges in maintaining consistent liquidity, as cash assets decreased and current liabilities increased over time. The volatility of the cash ratio further underscores fluctuations in the company’s ability to cover short-term obligations with cash alone. The elevated current liabilities toward the later periods, combined with persistently low cash assets and cash ratios, could suggest increased reliance on other financing sources or working capital management strategies that impact liquidity.