Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
ONEOK Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
- Gross Profit Margin
- The gross profit margin exhibits a rising trend beginning in the first quarter of 2019, increasing steadily from 25.18% to a peak of 40.18% in the first quarter of 2021. Following this peak, the margin declines consistently through 2022, reaching a low of 19.49% by the fourth quarter of that year. In the first two quarters of 2023, there is a recovery trend observed as the margin rises to 24.5% and then 21.3% respectively.
- Operating Profit Margin
- The operating profit margin follows a similar pattern to gross profit margin but with less volatility. Starting at 14.58% in the first quarter of 2019, it generally increases to 21.97% by early 2021. Subsequently, it declines through 2022 down to approximately 11.87% by the fourth quarter. Notably, it rebounds sharply in 2023 to 16.97% and then 19.22%, indicating potential operational improvements or cost control measures during this period.
- Net Profit Margin
- Net profit margin shows growth from 9.15% at the beginning of 2019 to around 11.91% in mid-2021. After a gradual decline to approximately 7.1% by the end of 2022, a notable improvement occurs in 2023 as margins increase to 7.69%, 11.09%, and 12.68%. This pattern suggests fluctuations in profitability potentially influenced by varying expenses, taxes, or non-operating items.
- Return on Equity (ROE)
- ROE trends upward overall, moving from 17.5% in early 2019 to over 25% throughout 2021 and 2022, peaking at 33.72% in mid-2023. This significant increase in return on equity reflects enhanced effectiveness in generating shareholder returns, possibly driven by improved earnings or optimized capital structure.
- Return on Assets (ROA)
- ROA initially declines sharply from around 6.3% in early 2019 to below 3% by mid-2020. It then recovers steadily, reaching 6.62% near the end of 2022 and climbing further to more than 10% by mid-2023. This recovery implies better asset utilization and efficiency in generating profits from assets over time.
Return on Sales
Return on Investment
Gross Profit Margin
ONEOK Inc., gross profit margin calculation (quarterly data)
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Gross profit margin = 100
× (Net marginQ2 2023
+ Net marginQ1 2023
+ Net marginQ4 2022
+ Net marginQ3 2022)
÷ (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
= 100 × (1,250 + 1,174 + 1,139 + 1,141)
÷ (3,732 + 4,521 + 5,032 + 5,914)
= 24.50%
- Net Margin
- The net margin shows a generally increasing trend over the analyzed periods. Starting from 734 million USD at the end of Q1 2018, it rose steadily to peak at 1250 million USD by Q2 2023. The data reveals a few minor fluctuations, particularly a dip around Q2 2020 to 720 million USD, likely reflecting external pressures, but the overall trajectory is upward indicating enhanced profitability.
- Revenues
- Revenues display marked volatility across the quarters. Initially, there is a decline from 3102 million USD in Q1 2018 down to 2263 million USD in Q3 2019. A significant recovery begins in Q4 2019, reaching a notable peak of 5997 million USD by Q3 2022. This peak is followed by a decline in the subsequent quarters, dropping to 3732 million USD by Q2 2023. The fluctuations suggest sensitivity to market conditions or operational factors impacting sales volume or pricing.
- Gross Profit Margin
- Gross profit margin shows an overall declining trend with some intermediate fluctuations. It starts at 25.18% in Q1 2019, rises to a peak of 40.18% in Q4 2019, and then consistently decreases to 19.49% by Q3 2022. A slight recovery occurs afterward, concluding at 24.5% in Q2 2023. This pattern may reflect changing cost structures, pricing strategies, or product mix over time.
- Overall Analysis
- Despite fluctuations in revenues and a declining gross profit margin, net margin has steadily increased, indicating improved operational efficiency or cost control. The company appears to have navigated periods of revenue contraction without adversely affecting profitability, which may suggest successful margin management. The recent decline in revenues combined with a recovering gross profit margin suggests potential shifts in strategic focus or external market influences.
Operating Profit Margin
ONEOK Inc., operating profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Operating income (loss) | 737) | 1,497) | 757) | 699) | 689) | 662) | 652) | 668) | 612) | 665) | 539) | 550) | 356) | (83) | 487) | 482) | 476) | 469) | 472) | 496) | 448) | 420) | |||||||
| Revenues | 3,732) | 4,521) | 5,032) | 5,914) | 5,997) | 5,445) | 5,420) | 4,536) | 3,389) | 3,195) | 2,571) | 2,174) | 1,661) | 2,137) | 2,664) | 2,263) | 2,458) | 2,780) | 3,137) | 3,394) | 2,961) | 3,102) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | 19.22% | 16.97% | 12.54% | 11.87% | 12.48% | 13.81% | 15.70% | 18.14% | 20.88% | 21.97% | 15.94% | 15.17% | 14.23% | 14.31% | 18.83% | 17.85% | 16.25% | 15.36% | 14.58% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 19.98% | 21.92% | 21.42% | 21.03% | 19.86% | 16.73% | 14.81% | 11.53% | 6.49% | -7.90% | -6.22% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 31.80% | 33.89% | 36.80% | 37.27% | 37.07% | 36.63% | 29.84% | 22.86% | 14.26% | 4.66% | -12.74% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 19.54% | 21.37% | 19.07% | 18.60% | 15.93% | 12.25% | 11.91% | -2.07% | -6.88% | -12.46% | -14.85% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 29.74% | 35.99% | 38.32% | 38.11% | 34.71% | 25.87% | 17.59% | 4.22% | -23.09% | -79.26% | -79.89% | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022
+ Operating income (loss)Q3 2022)
÷ (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
= 100 × (737 + 1,497 + 757 + 699)
÷ (3,732 + 4,521 + 5,032 + 5,914)
= 19.22%
2 Click competitor name to see calculations.
- Operating Income (Loss) Trend
- The operating income displayed a general upward trend from early 2018 through 2019, peaking near the end of 2019. A significant deterioration occurred in the first quarter of 2020, with operating income plummeting into a loss of $83 million, likely reflecting impactful external or operational challenges during this period. Subsequently, operating income rebounded sharply, resuming growth and reaching new highs throughout 2021 and into 2023. The peak operating income was recorded in the first quarter of 2023 at $1,497 million, indicating a strong recovery and considerable expansion relative to previous quarters. The subsequent quarter saw a decline but maintained elevated operating income levels compared to prior years.
- Revenue Patterns
- Revenue showed fluctuating trends over the period. Initial values around 2018 were relatively steady, with some decline observed entering 2019. The revenue hit a low during the first half of 2020, correlating with the lowest operating income in the first quarter of that year, suggesting a challenging operating environment. From mid-2020 onwards, revenue rebounded substantially, achieving significant quarter-over-quarter growth through 2021 and the first half of 2022. After peaking in mid-2022, revenue levels started to decline gradually but remained above earlier historical levels through 2023.
- Operating Profit Margin Dynamics
- The operating profit margin was not reported in early periods but was consistently positive beginning in late 2018, generally ranging from approximately 14% to nearly 19% through 2019. There was a visible decline in margin starting in 2020, dropping to levels near 11.87% by the end of that year, likely reflecting the dip in operating income and revenue pressure. Margins improved notably in 2021, achieving a peak close to 22% during the first quarter, then experienced a gradual decrease throughout 2022. Margin figures rose again in 2023, reaching approximately 19.22% in the second quarter, indicating improved profitability relative to sales during this time.
- Overall Financial Insights
- The company experienced volatility tied to external challenges evident around early 2020, with significant adverse impacts on operating income, revenue, and margins. A strong rebound phase followed, characterized by growth in both revenue and profitability, culminating in record operating income by early 2023. Despite some recent declines in revenue in 2023, profitability margins show resilience, suggesting effective cost control or favorable pricing. The cyclical patterns likely reflect broader economic factors influencing demand and operational efficiency over the assessed time frame.
Net Profit Margin
ONEOK Inc., net profit margin calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to ONEOK | 468) | 1,049) | 485) | 432) | 414) | 391) | 379) | 392) | 342) | 386) | 308) | 312) | 134) | (142) | 320) | 309) | 312) | 337) | 293) | 313) | 281) | 265) | |||||||
| Revenues | 3,732) | 4,521) | 5,032) | 5,914) | 5,997) | 5,445) | 5,420) | 4,536) | 3,389) | 3,195) | 2,571) | 2,174) | 1,661) | 2,137) | 2,664) | 2,263) | 2,458) | 2,780) | 3,137) | 3,394) | 2,961) | 3,102) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | 12.68% | 11.09% | 7.69% | 7.10% | 7.37% | 8.01% | 9.07% | 10.43% | 11.91% | 11.88% | 7.17% | 7.24% | 7.13% | 8.40% | 12.58% | 11.76% | 10.67% | 9.98% | 9.15% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 14.09% | 15.41% | 15.05% | 15.05% | 14.09% | 11.60% | 10.04% | 7.36% | 3.09% | -8.10% | -5.87% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 19.37% | 20.97% | 23.80% | 24.06% | 24.34% | 23.91% | 17.63% | 12.93% | 6.33% | 0.09% | -14.38% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 13.38% | 14.87% | 13.23% | 13.41% | 11.06% | 8.40% | 8.33% | -2.45% | -6.21% | -10.55% | -12.57% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 21.55% | 27.29% | 36.32% | 35.55% | 32.60% | 25.31% | 8.95% | -1.47% | -24.23% | -78.62% | -83.28% | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
Net profit margin = 100
× (Net income (loss) attributable to ONEOKQ2 2023
+ Net income (loss) attributable to ONEOKQ1 2023
+ Net income (loss) attributable to ONEOKQ4 2022
+ Net income (loss) attributable to ONEOKQ3 2022)
÷ (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
= 100 × (468 + 1,049 + 485 + 432)
÷ (3,732 + 4,521 + 5,032 + 5,914)
= 12.68%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ONEOK
- The net income shows a general upward trend from the first quarter of 2018 through mid-2019, fluctuating between approximately $265 million and $337 million. However, the first quarter of 2020 registers a significant net loss of $142 million, marking a sharp deviation from previous positive results. Following this loss, the net income quickly recovers and increases steadily, reaching a peak of $1,049 million in the first quarter of 2023 before declining to $468 million in the second quarter of 2023. This pattern suggests a robust recovery phase after a transient negative period coinciding with early 2020.
- Revenues
- Revenues exhibit notable fluctuations throughout the observed period. Initial values in 2018 range between approximately $2.9 billion to $3.4 billion, followed by a decline through 2019 that extends into early 2020, reaching a low point of $1.7 billion in the second quarter of 2020. From mid-2020 onward, revenues increase substantially, peaking at $5.9 billion during the third quarter of 2022. After this peak, revenues show a downward trend, falling to $3.7 billion by the second quarter of 2023. The data indicate increased volatility and a recovery trend post-2020, with a peak in revenue in late 2021 and 2022 before a subsequent decline.
- Net Profit Margin
- The net profit margin, calculated as a percentage, is absent in the early periods but becomes available beginning with the third quarter of 2018, starting at 9.15%. It exhibits a gradual increase to reach a maximum of 12.58% by the fourth quarter of 2019. A decline follows, reducing the margin to a low of around 7.1% in the third quarter of 2022. Subsequently, the margin recovers sharply, reaching 12.68% in the second quarter of 2023. This indicates a period of margin contraction during 2020-2022, consistent with the impacts on net income and revenues, followed by an improvement into 2023.
Return on Equity (ROE)
ONEOK Inc., ROE calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to ONEOK | 468) | 1,049) | 485) | 432) | 414) | 391) | 379) | 392) | 342) | 386) | 308) | 312) | 134) | (142) | 320) | 309) | 312) | 337) | 293) | 313) | 281) | 265) | |||||||
| Total ONEOK shareholders’ equity | 7,218) | 7,132) | 6,494) | 6,312) | 6,115) | 5,994) | 6,015) | 5,841) | 5,910) | 6,097) | 6,042) | 6,146) | 6,241) | 5,561) | 6,226) | 6,219) | 6,348) | 6,442) | 6,580) | 6,653) | 6,665) | 6,701) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | 33.72% | 33.37% | 26.52% | 25.61% | 25.79% | 25.10% | 24.93% | 24.45% | 22.82% | 18.71% | 10.14% | 10.17% | 9.96% | 14.38% | 20.54% | 20.12% | 19.77% | 19.01% | 17.50% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 19.05% | 22.44% | 22.27% | 21.53% | 18.92% | 14.02% | 11.24% | 7.29% | 2.69% | -5.89% | -4.21% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 27.20% | 33.15% | 38.91% | 36.79% | 31.69% | 26.12% | 17.79% | 10.61% | 4.18% | 0.05% | -9.05% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 24.48% | 29.54% | 27.04% | 27.87% | 21.97% | 15.24% | 13.67% | -3.67% | -8.41% | -12.17% | -14.28% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 23.35% | 32.79% | 44.22% | 44.97% | 39.51% | 29.49% | 11.42% | -1.73% | -25.93% | -70.84% | -79.85% | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
ROE = 100
× (Net income (loss) attributable to ONEOKQ2 2023
+ Net income (loss) attributable to ONEOKQ1 2023
+ Net income (loss) attributable to ONEOKQ4 2022
+ Net income (loss) attributable to ONEOKQ3 2022)
÷ Total ONEOK shareholders’ equity
= 100 × (468 + 1,049 + 485 + 432)
÷ 7,218 = 33.72%
2 Click competitor name to see calculations.
- Net Income (Loss) Trend
- The net income attributable to the company demonstrated steady growth from the first quarter of 2018 through the last quarter of 2019, with values generally fluctuating between 265 million and 320 million US dollars. A significant downturn occurred in the first quarter of 2020, reflected by a sharp loss of 142 million US dollars, likely indicative of adverse economic or industry conditions. From the second quarter of 2020 onward, net income rebounded strongly and continued an upward trajectory, reaching a notable peak of 1,049 million US dollars in the first quarter of 2023 before moderating to 468 million in the subsequent quarter. This recovery and growth reflect resilience and improved operational performance during the post-crisis period.
- Total Shareholders' Equity
- Shareholders' equity showed a gradual decline from early 2018 through the end of 2019, decreasing from approximately 6.7 billion US dollars to around 6.2 billion US dollars. This was followed by another decline reaching a low of 5.56 billion US dollars in the first quarter of 2020, coinciding with the net income loss experienced during the same period. Subsequent quarters saw a slow but consistent recovery in equity levels, rising back above 7 billion US dollars by the first half of 2023. Despite the fluctuations, the overall equity base has shown resilience with growth evident in the later periods.
- Return on Equity (ROE)
- ROE values were not available for the initial quarters but became consistently measurable starting in late 2018. Initially, the ROE maintained levels ranging roughly from 17.5% to just over 20%, indicating a moderate return on shareholders' equity. During the challenging early quarters of 2020, ROE dropped sharply to just below 10%, coinciding with the recorded net loss and equity declines. Thereafter, ROE improved steadily, reaching and sustaining levels above 20% through 2021 and into 2022. The upward trend continued, culminating in exceptional performance in the first half of 2023, with ROE values exceeding 33%, demonstrating enhanced profitability relative to equity.
- Overall Insights
- The data reveal a cyclical pattern influenced by external conditions, with a marked downturn in early 2020 followed by a robust recovery phase. Net income and ROE metrics illustrate resilience and an effective adaptation to adverse conditions, while shareholders' equity reflects the financial adjustments over time. The strong growth in profitability and equity in recent quarters suggest improved operational efficiency and favorable market conditions. Consistent increases in ROE during the recovery period emphasize enhanced effectiveness in generating returns on invested equity.
Return on Assets (ROA)
ONEOK Inc., ROA calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Net income (loss) attributable to ONEOK | 468) | 1,049) | 485) | 432) | 414) | 391) | 379) | 392) | 342) | 386) | 308) | 312) | 134) | (142) | 320) | 309) | 312) | 337) | 293) | 313) | 281) | 265) | |||||||
| Total assets | 24,038) | 24,464) | 24,379) | 24,439) | 24,527) | 23,993) | 23,622) | 23,872) | 23,437) | 23,180) | 23,079) | 22,781) | 22,992) | 21,969) | 21,812) | 21,336) | 19,752) | 18,934) | 18,232) | 17,911) | 16,914) | 16,432) | |||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | 10.12% | 9.73% | 7.06% | 6.62% | 6.43% | 6.27% | 6.35% | 5.98% | 5.75% | 4.92% | 2.66% | 2.74% | 2.70% | 3.64% | 5.86% | 5.86% | 6.36% | 6.47% | 6.32% | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 11.98% | 13.98% | 13.76% | 13.15% | 11.26% | 8.23% | 6.52% | 4.13% | 1.48% | -3.21% | -2.31% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 14.43% | 17.32% | 19.91% | 19.04% | 16.98% | 13.78% | 8.91% | 5.36% | 2.17% | 0.02% | -4.31% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 13.41% | 15.89% | 14.29% | 14.01% | 10.59% | 7.27% | 6.80% | -1.75% | -3.95% | -5.72% | -6.74% | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 9.55% | 13.53% | 18.32% | 17.90% | 14.82% | 9.89% | 3.09% | -0.43% | -5.92% | -16.34% | -18.52% | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31), 10-K (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-Q (reporting date: 2018-03-31).
1 Q2 2023 Calculation
ROA = 100
× (Net income (loss) attributable to ONEOKQ2 2023
+ Net income (loss) attributable to ONEOKQ1 2023
+ Net income (loss) attributable to ONEOKQ4 2022
+ Net income (loss) attributable to ONEOKQ3 2022)
÷ Total assets
= 100 × (468 + 1,049 + 485 + 432)
÷ 24,038 = 10.12%
2 Click competitor name to see calculations.
- Net Income (Loss) Attributable to ONEOK
- The net income shows an overall increasing trend from 2018 to 2023 with periodic fluctuations. Starting at $265 million in the first quarter of 2018, it gradually rises, reaching a peak of $320 million by the end of 2018. During 2019, the net income remains relatively stable, fluctuating slightly around the low $300 million range. However, a significant drop to a loss of $142 million occurs in the first quarter of 2020, likely due to external factors impacting earnings. Following this downturn, recovery is evident with net income rising back above $300 million by the end of 2020. From 2021 onwards, net income demonstrates a steady upward trajectory, culminating in a notable jump to $1,049 million in the first quarter of 2023, before slightly decreasing to $468 million in the second quarter of 2023. This surge in early 2023 indicates strong earnings growth in recent periods.
- Total Assets
- Total assets exhibit a consistent upward trend across the entire timeframe, moving from approximately $16.4 billion in early 2018 to a level fluctuating around $24 billion by mid-2023. Growth in total assets is steady, although the pace appears to slow slightly in 2022 and 2023, with minor variations around the $24 billion mark. This suggests ongoing asset accumulation or investment with stabilization in asset base size in the most recent periods.
- Return on Assets (ROA)
- Return on assets values are available starting from the third quarter of 2018 and indicate a general upward trend. Initially, ROA ranges between approximately 5.86% and 6.47% from late 2018 to late 2019. A decline is observed in 2020 with ROA dropping to as low as 2.7%, reflecting an impact on profitability possibly connected to the net loss reported early in that year. From 2021 forward, ROA improves steadily, rising from about 4.92% in the first quarter to over 10% by the second quarter of 2023. This upward progression signals enhanced efficiency in asset utilization and profitability generation over time.
- Summary of Trends
- In summary, the financial data reveals resilience and growth across multiple metrics. Despite a sharp earnings decline in early 2020, net income rebounds strongly and reaches new highs by 2023. Total assets consistently increase over the period, underpinning operational growth or investment. ROA trends reflect improved profitability and asset efficiency, particularly notable after the 2020 dip. Recent quarters show significant earnings growth alongside stable asset levels, indicating potentially improved business conditions or strategic initiatives driving profitability.