Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
ONEOK Inc., short-term (operating) activity 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).
- Inventory turnover
- The inventory turnover ratio exhibits an overall increasing trend from early 2018 through mid-2023, starting around 21.52 and reaching above 31.5 by mid-2023. After an initial decline towards the end of 2019 and mid-2020, there is a steady increase from 2021 onwards, indicating improved efficiency in inventory management in recent periods.
- Receivables turnover
- The receivables turnover ratio fluctuates moderately across the periods but shows a gradual upward trend from 2018 to 2023. The ratio moved from the mid-teens at the beginning to nearly 19 by mid-2023, suggesting improving effectiveness in collecting receivables over time.
- Payables turnover
- Payables turnover has generally increased over the analyzed timeframe, rising from about 8.4 in early 2018 to over 16 by mid-2023. Despite some dips around 2019 and 2020, the strong upward tendency in recent quarters may indicate quicker payment cycles to suppliers.
- Working capital turnover
- Working capital turnover data is somewhat limited but shows a substantial jump in the most recent quarters of the dataset, reaching approximately 55.5. Earlier values were lower and more variable, suggesting a significant improvement in how effectively the company utilizes its working capital in the latest periods.
- Average inventory processing period
- This metric generally declined over time, indicating faster inventory processing. Starting with higher days in 2019 (around 27 days), it falls to roughly 12 days by mid-2023. The decrease points to enhanced efficiency in inventory handling and turnover.
- Average receivable collection period
- The average days to collect receivables showed an increase from around 21-24 days early on to peaks above 35 days in 2020-2021, then a steady decline back to 19 days by mid-2023. This reduction toward the end of the period suggests that the company improved its collection processes in recent quarters.
- Operating cycle
- The operating cycle lengthened significantly up to 2020-2021, reaching ranges of 60-70 days, but then shortened notably to about 31 days by mid-2023. This reduction reflects improvements in managing the time between inventory acquisition and cash collection.
- Average payables payment period
- The average payment period to suppliers increased markedly during 2019 and 2020, reaching as high as 65 days, but then declined consistently through 2023 to around 22 days. This shortening payment period could indicate a strategic shift to faster payments or improved cash flow management.
- Cash conversion cycle
- The cash conversion cycle remained negative or near zero through 2018 and 2019, indicating efficient cash flow management where the company pays suppliers after collecting cash from customers. However, it turned positive and increased up to 19 days in 2020 but then stabilized around 9 days from 2021 onward, reflecting a balance between receivables, inventory, and payables management in recent years.
Turnover Ratios
Average No. Days
Inventory Turnover
ONEOK Inc., inventory turnover 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) | |||||||||||||||||||||||||||||
| Cost of sales and fuel | 2,482) | 3,347) | 3,893) | 4,773) | 4,878) | 4,366) | 4,319) | 3,449) | 2,367) | 2,122) | 1,627) | 1,266) | 940) | 1,277) | 1,791) | 1,415) | 1,626) | 1,956) | 2,318) | 2,561) | 2,176) | 2,368) | |||||||
| Inventory | 460) | 556) | 581) | 693) | 774) | 732) | 581) | 776) | 600) | 513) | 371) | 460) | 515) | 386) | 507) | 476) | 362) | 407) | 438) | 555) | 400) | 284) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Inventory turnover1 | 31.51 | 30.38 | 30.84 | 26.45 | 21.98 | 19.80 | 21.10 | 12.33 | 12.31 | 11.60 | 13.77 | 11.48 | 10.53 | 15.82 | 13.40 | 15.35 | 23.34 | 22.14 | 21.52 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 23.28 | 25.16 | 28.58 | 25.22 | 26.71 | 27.10 | 24.68 | 21.96 | 18.60 | 17.05 | 16.64 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 53.99 | 60.05 | 64.39 | 61.22 | 52.97 | 45.80 | 37.94 | 34.71 | 25.71 | 20.45 | 18.75 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 15.02 | 16.69 | 16.32 | 16.05 | 14.93 | 13.84 | 14.73 | 12.30 | 11.14 | 9.86 | 9.47 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 15.60 | 15.37 | 17.79 | 18.75 | 21.57 | 20.63 | 14.06 | 12.52 | 10.63 | 7.59 | 9.38 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Inventory turnover
= (Cost of sales and fuelQ2 2023
+ Cost of sales and fuelQ1 2023
+ Cost of sales and fuelQ4 2022
+ Cost of sales and fuelQ3 2022)
÷ Inventory
= (2,482 + 3,347 + 3,893 + 4,773)
÷ 460 = 31.51
2 Click competitor name to see calculations.
- Cost of Sales and Fuel
- The cost of sales and fuel displayed notable fluctuations over the observed periods. Beginning at 2,368 million USD in the first quarter of 2018, it trended downward through mid-2019, reaching as low as 1,415 million USD in September 2019. However, a marked increase followed from late 2019 through 2022, peaking at 4,878 million USD in September 2022. After this peak, the value declined steadily during 2023, finishing at 2,482 million USD by the second quarter. This pattern suggests the company experienced significant variations in its expenses related to sales and fuel, which could correlate with changes in operational activity, commodity prices, or supply chain factors during these intervals.
- Inventory
- Inventory levels showed considerable variability. Initial values around 284 million USD in early 2018 increased substantially to 555 million USD by the third quarter of 2018, followed by some decreases and rises, hitting a high of 776 million USD in the third quarter of 2021. Post-2021, inventory decreased with some fluctuations, ending at 460 million USD in mid-2023. This oscillation indicates adjustments in stock management or procurement strategies, possibly in response to market demand, production schedules, or supply chain constraints.
- Inventory Turnover Ratio
- The inventory turnover ratio experienced significant changes across the periods. From approximately 21.52 in the first quarter of 2019, it rose slightly and then decreased to 10.53 by the third quarter of 2020. Thereafter, a gradual recovery occurred, with the ratio increasing to 13.77 at year-end 2020 and stabilizing around 12 in most of 2021. Notably, the ratio sharply improved from 21.1 in the first quarter of 2022 to over 31 by the second quarter of 2023. This upward trend towards higher turnover suggests enhanced efficiency in managing inventory, reflecting quicker sales or improved inventory control measures over the latest periods.
Receivables Turnover
ONEOK Inc., receivables turnover 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) | |||||||||||||||||||||||||||||
| 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) | |||||||
| Accounts receivable, net | 1,023) | 1,153) | 1,532) | 1,729) | 1,779) | 1,682) | 1,442) | 1,498) | 1,092) | 910) | 830) | 718) | 609) | 498) | 835) | 719) | 669) | 813) | 819) | 1,085) | 935) | 844) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Receivables turnover1 | 18.77 | 18.62 | 14.61 | 13.17 | 12.03 | 11.17 | 11.47 | 9.14 | 10.37 | 10.55 | 10.29 | 12.03 | 14.33 | 19.14 | 12.17 | 14.80 | 17.58 | 15.10 | 15.38 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 11.10 | 12.21 | 11.52 | 10.11 | 7.67 | 7.60 | 8.45 | 8.12 | 7.39 | 6.79 | 8.24 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 14.73 | 14.26 | 11.07 | 10.21 | 8.02 | 6.82 | 6.87 | 6.62 | 6.47 | 5.01 | 6.82 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 11.07 | 10.85 | 8.56 | 8.98 | 5.31 | 5.34 | 6.17 | 6.39 | 5.94 | 5.41 | 8.42 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Receivables turnover
= (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
÷ Accounts receivable, net
= (3,732 + 4,521 + 5,032 + 5,914)
÷ 1,023 = 18.77
2 Click competitor name to see calculations.
The financial data displays notable fluctuations and trends in key financial metrics over the analyzed periods. Revenues exhibit a cyclical pattern with some periods of decline followed by recovery and growth. From early 2018 to late 2019, revenues generally decreased from 3,102 million to 2,664 million US dollars, reaching a low point in mid-2020 at 1,661 million. Subsequently, a strong recovery is observed beginning in early 2021, peaking at 5,420 million by the end of 2021. The subsequent period through mid-2023 shows a gradual decline, with revenues falling to 3,732 million at the latest data point, but receipts remain above the lower values seen in 2019 and 2020.
Accounts receivable, net, shows a somewhat correlated trend with revenues but with less volatility. There is a gradual increase from 844 million at the beginning of 2018 to a peak of 1,682 million in mid-2022. A decline follows into mid-2023, where receivables reduce to 1,023 million. Such a pattern indicates that while sales volume fluctuates, somewhat steady increases in receivables may reflect changes in credit policies or collection efficiency, though the eventual decline suggests some normalization or tightening in credit terms or improved collections.
The receivables turnover ratio data, available from early 2019 onwards, reflects changes in how quickly the company collects its receivables. This ratio starts at a relatively high rate of 15.38 in March 2019, indicating efficient collection. It then declines steadily, reaching a low of 9.14 at the end of 2020. This reduction signals a slower collection period or potential issues in receivables management during this period, possibly related to market conditions. From 2021 forward, the turnover improves consistently, reaching its highest values at 18.77 in mid-2023, indicative of a significant improvement in collecting receivables more rapidly, which generally supports liquidity and cash flow situations.
Overall, the trends show that revenue recovery post-2020 is accompanied by an increase and subsequent normalization of accounts receivable and a marked improvement in the receivables turnover ratio. This suggests enhanced operational efficiency in collections concurrent with revenue growth. The data also highlights challenges faced around 2019-2020, likely linked to external economic pressures, with subsequent operational adjustments contributing to recovery.
- Revenues
- Initial decline until mid-2020, followed by strong recovery and peak in late 2021, then moderate decline through mid-2023.
- Accounts receivable, net
- Moderate increase peaking in mid-2022, followed by decline through mid-2023, partially mirroring revenue trends.
- Receivables turnover ratio
- High efficiency early 2019, decline to low point in late 2020, then significant improvement reaching highest levels by mid-2023.
- Overall observations
- Improved receivables management and collection efficiency in recent periods support revenue recovery and strengthening liquidity position.
Payables Turnover
ONEOK Inc., payables turnover 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) | |||||||||||||||||||||||||||||
| Cost of sales and fuel | 2,482) | 3,347) | 3,893) | 4,773) | 4,878) | 4,366) | 4,319) | 3,449) | 2,367) | 2,122) | 1,627) | 1,266) | 940) | 1,277) | 1,791) | 1,415) | 1,626) | 1,956) | 2,318) | 2,561) | 2,176) | 2,368) | |||||||
| Accounts payable | 880) | 1,074) | 1,359) | 1,659) | 1,924) | 1,730) | 1,332) | 1,443) | 1,053) | 930) | 719) | 624) | 755) | 742) | 1,210) | 1,130) | 907) | 1,027) | 1,118) | 1,340) | 1,027) | 773) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Payables turnover1 | 16.47 | 15.73 | 13.17 | 11.05 | 8.84 | 8.38 | 9.20 | 6.63 | 7.01 | 6.40 | 7.10 | 8.45 | 7.18 | 8.23 | 5.61 | 6.47 | 9.32 | 8.77 | 8.43 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 11.48 | 12.94 | 12.44 | 10.46 | 8.28 | 8.78 | 9.46 | 8.79 | 7.88 | 7.45 | 8.63 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 14.43 | 14.81 | 12.74 | 11.97 | 11.13 | 10.98 | 9.12 | 8.76 | 8.10 | 5.91 | 6.96 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 8.87 | 10.11 | 9.09 | 9.78 | 6.49 | 6.22 | 6.66 | 5.98 | 5.51 | 4.83 | 5.96 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Payables turnover
= (Cost of sales and fuelQ2 2023
+ Cost of sales and fuelQ1 2023
+ Cost of sales and fuelQ4 2022
+ Cost of sales and fuelQ3 2022)
÷ Accounts payable
= (2,482 + 3,347 + 3,893 + 4,773)
÷ 880 = 16.47
2 Click competitor name to see calculations.
- Cost of Sales and Fuel
- The cost of sales and fuel exhibits a generally fluctuating but increasing trend over the analyzed periods. Initially, values decline from $2,368 million in March 2018 to a low of $1,415 million in September 2019. Following this, the cost rises significantly, peaking at $4,878 million by September 2022. This peak represents more than a threefold increase compared to the low observed in 2019. The last two quarters show a decreasing trajectory, falling to $3,347 million and $2,482 million by June 2023, respectively.
- Accounts Payable
- Accounts payable demonstrate a pattern of growth and some volatility. Beginning at $773 million in March 2018, the figure generally increases over the years, reaching a peak of $1,924 million in June 2022. This rise is followed by a period of decline, with balances falling to $880 million by June 2023. This suggests the company experienced periods of higher outstanding payables possibly linked to increased operational costs, followed by a reduction in liabilities over the latest periods.
- Payables Turnover Ratio
- The payables turnover ratio displays consistent growth throughout the periods with observable increases from around 5.61 in December 2018 to 16.47 by June 2023. This increase in turnover ratio implies an acceleration in payment to suppliers, indicating potentially improved liquidity or more efficient management of payables. The marked rise toward the end indicates the company increasingly settles its payables more frequently within the period measured.
- Overall Insights
- There is a notable correlation between the upward trend in cost of sales and fuel with the increase in accounts payable, suggesting scalable operations with more inventory or services procured on credit. The rising payables turnover ratio indicates the company is managing to pay off its suppliers more rapidly over time, which could reflect stronger cash flow management despite increased costs. The decline in both cost and accounts payable in the most recent quarters might indicate a strategic effort to reduce expenses and liabilities.
Working Capital Turnover
ONEOK Inc., working capital turnover calculation (quarterly data)
| Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||||||
| Current assets | 1,863) | 2,569) | 2,548) | 2,765) | 3,026) | 2,641) | 2,374) | 2,667) | 2,236) | 1,998) | 1,870) | 1,721) | 2,180) | 1,488) | 1,470) | 1,968) | 1,401) | 1,343) | 1,399) | 1,808) | 1,434) | 1,291) | |||||||
| Less: Current liabilities | 1,517) | 2,182) | 3,052) | 4,139) | 3,655) | 3,483) | 3,185) | 2,803) | 2,395) | 2,048) | 1,345) | 1,094) | 1,273) | 1,091) | 2,020) | 1,567) | 1,737) | 1,690) | 2,108) | 2,450) | 2,572) | 2,051) | |||||||
| Working capital | 346) | 387) | (504) | (1,373) | (628) | (841) | (810) | (136) | (159) | (50) | 525) | 627) | 907) | 397) | (550) | 400) | (336) | (347) | (710) | (642) | (1,138) | (760) | |||||||
| 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) | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Working capital turnover1 | 55.49 | 55.46 | — | — | — | — | — | — | — | — | 16.26 | 13.77 | 9.62 | 23.99 | — | 26.56 | — | — | — | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 16.54 | 15.89 | 14.61 | 15.53 | 17.08 | 13.09 | 22.40 | 19.37 | 24.04 | 32.46 | 24.25 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 16.88 | 16.56 | 13.30 | 11.63 | 9.84 | 9.02 | 11.37 | 3.72 | 3.24 | 3.02 | 2.80 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 12.16 | 12.91 | 13.95 | 15.33 | 26.98 | 59.06 | 110.19 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | — | 50.58 | 32.45 | 44.63 | 49.75 | 21.36 | 13.76 | 28.72 | 5.99 | 11.43 | 29.88 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Working capital turnover
= (RevenuesQ2 2023
+ RevenuesQ1 2023
+ RevenuesQ4 2022
+ RevenuesQ3 2022)
÷ Working capital
= (3,732 + 4,521 + 5,032 + 5,914)
÷ 346 = 55.49
2 Click competitor name to see calculations.
- Working Capital
- The working capital values exhibit significant volatility over the observed periods. Initially, there is a negative working capital position from March 31, 2018, to June 30, 2019, with figures fluctuating between -760 million and -336 million US dollars. A notable shift occurs starting September 30, 2019, with a positive working capital of 400 million US dollars, followed by a return to negative in December 2019 at -550 million. Throughout 2020, the working capital reverses to a positive trend, peaking at 907 million US dollars in June 2020 and subsequently declining to 525 million by the end of that year. The year 2021 sees a renewed shift back into negative territory, reaching as low as -810 million at year-end. In 2022, the negative trend intensifies, with the working capital falling to -1373 million at September-end. The first two quarters of 2023 reveal a recovery into positive territory, with working capital values of 387 million and 346 million US dollars.
- Revenues
- Revenues show an overall upward trend from 2018 through 2021, starting at approximately 3.1 billion US dollars in the first quarter of 2018 and peaking at over 5.4 billion US dollars in December 2021. The revenue figures fluctuate over the quarters, with noticeable decreases in 2019, particularly in the mid-year quarters, but recover significantly by the end of 2021. The year 2022 demonstrates further stability at a high revenue level, consistently near or above 5.9 billion US dollars for the first three quarters, followed by a decline in the final quarter to just over 5.0 billion US dollars. The first two quarters of 2023 show a continued downward trajectory, with revenues decreasing to 4.5 billion and then 3.7 billion US dollars respectively.
- Working Capital Turnover
- The working capital turnover ratio data is limited and intermittent. Initial high ratios appear in late 2019 and early 2020 periods, with a particularly high ratio of 26.56 recorded in one quarter and others such as 23.99, 16.26, and 13.77 during adjacent quarters. There is a large gap in available ratio data for much of 2021 and 2022. However, in the first two quarters of 2023, the ratio spikes sharply to 55.46 and 55.49, indicating a substantially increased efficiency in revenue generation relative to working capital during this recent period.
- Overall Insights
- The data reveals high variability in working capital management, with frequent swings between positive and negative positions that coincide with shifts in revenue trends. The revenue trajectory suggests a period of growth from 2018 through 2021, with peak performance occurring late 2021 and early 2022, followed by a noticeable decline in 2023. The sharp increase in working capital turnover in early 2023 could imply improved utilization of working capital, likely in response to the declining revenue levels, signaling possible operational adjustments or financial strategy changes. The fluctuating working capital and discontinuous turnover ratio figures suggest that the company might be facing challenges in balancing short-term liquidity and operational growth.
Average Inventory Processing Period
ONEOK Inc., average inventory processing period 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 | |||||||||||||||||||||||||||||
| Inventory turnover | 31.51 | 30.38 | 30.84 | 26.45 | 21.98 | 19.80 | 21.10 | 12.33 | 12.31 | 11.60 | 13.77 | 11.48 | 10.53 | 15.82 | 13.40 | 15.35 | 23.34 | 22.14 | 21.52 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average inventory processing period1 | 12 | 12 | 12 | 14 | 17 | 18 | 17 | 30 | 30 | 31 | 26 | 32 | 35 | 23 | 27 | 24 | 16 | 16 | 17 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 16 | 15 | 13 | 14 | 14 | 13 | 15 | 17 | 20 | 21 | 22 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 7 | 6 | 6 | 6 | 7 | 8 | 10 | 11 | 14 | 18 | 19 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Exxon Mobil Corp. | 24 | 22 | 22 | 23 | 24 | 26 | 25 | 30 | 33 | 37 | 39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 23 | 24 | 21 | 19 | 17 | 18 | 26 | 29 | 34 | 48 | 39 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 31.51 = 12
2 Click competitor name to see calculations.
- Inventory Turnover
- The inventory turnover ratio exhibits variability across the reported periods. Starting at a level above 20 in early 2018, it increased slightly to reach its peak around 23.34 in September 2018, then declined significantly toward the end of 2019, dropping to approximately 10.53 in the third quarter of 2020. From this trough, the ratio showed a gradual recovery, stabilizing between roughly 11 and 13 until early 2021. Starting in the second quarter of 2021, the turnover ratio demonstrated a strong upward trend, sharply increasing to exceed 30 by early 2023. This resurgence suggests improved efficiency in managing inventory relative to sales in the most recent periods analyzed.
- Average Inventory Processing Period
- The average inventory processing period, representing the number of days inventory is held, mirrors an opposite trend to that of the inventory turnover. Initially, the processing period was relatively low, around 16 to 17 days in early 2018, but it escalated significantly in late 2019 and through 2020, reaching a peak of 35 days in the third quarter of 2020, indicating slower inventory movement. Following this peak, the average period started to decline gradually, stabilizing around 30 days through late 2021. From early 2022 onward, there is a clear and rapid decrease in days held, dropping to 12 days by the first half of 2023, reflecting improvements in inventory turnover and faster inventory processing.
- Overall Insights
- The data indicates that the company faced challenges in inventory management during 2019 and 2020, as evidenced by declining turnover and prolonged inventory processing periods. However, starting in 2021 and continuing through 2023, the company has significantly enhanced its inventory-related efficiency, as these ratios have moved in favorable directions. The marked improvement in inventory turnover coupled with the reduction in processing days suggests effective operational adjustments and potentially stronger alignment with demand, resulting in more efficient inventory utilization.
Average Receivable Collection Period
ONEOK Inc., average receivable collection period 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 | |||||||||||||||||||||||||||||
| Receivables turnover | 18.77 | 18.62 | 14.61 | 13.17 | 12.03 | 11.17 | 11.47 | 9.14 | 10.37 | 10.55 | 10.29 | 12.03 | 14.33 | 19.14 | 12.17 | 14.80 | 17.58 | 15.10 | 15.38 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average receivable collection period1 | 19 | 20 | 25 | 28 | 30 | 33 | 32 | 40 | 35 | 35 | 35 | 30 | 25 | 19 | 30 | 25 | 21 | 24 | 24 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 33 | 30 | 32 | 36 | 48 | 48 | 43 | 45 | 49 | 54 | 44 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 25 | 26 | 33 | 36 | 46 | 53 | 53 | 55 | 56 | 73 | 54 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 33 | 34 | 43 | 41 | 69 | 68 | 59 | 57 | 61 | 67 | 43 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 18.77 = 19
2 Click competitor name to see calculations.
The analysis of the receivables turnover ratio over the observed periods indicates varying efficiency in the collection process. Initially, values ranged from 15.38 to 14.8 during early 2018 and 2019 quarters, reflecting a relatively high frequency of receivables being collected within the period. However, a declining trend is noticeable in the first quarters of 2020 and 2021, with turnovers decreasing to a low of around 9.14, suggesting slower collection activity or increased outstanding receivables during these times.
From 2021 onwards, the ratio begins to improve steadily, rising to 18.77 by mid-2023, indicating enhanced efficiency and quicker turnover of receivables. This improvement could point to better credit management or stronger collection efforts in the recent years.
Conversely, the average receivable collection period presents an inverse pattern to the turnover ratio, as expected. The period fluctuates between 21 to 30 days initially but rises to 40 days by late 2021, corresponding to the lower turnover figures. This longer collection period indicates slower receipt of payments from customers during that timeframe.
Subsequently, a gradual decline in the collection period is seen, improving back to 19 days by mid-2023. This aligns with the increasing turnover ratio and further suggests more efficient receivables management, reducing the days outstanding.
- Receivables Turnover Ratio
- Started high around 15-17 in 2018-2019, dipped to below 10 in 2021, and then steadily increased reaching approximately 18.7 by mid-2023.
- Average Receivable Collection Period
- Varied between 21 and 30 days initially; extended up to 40 days in 2021, then decreased consistently to 19 days by mid-2023.
Overall, the data reveal a period of reduced collection efficiency around 2020 and 2021, followed by marked improvement through 2022 and into 2023, illustrating a positive trend in the company’s receivable management practices.
Operating Cycle
ONEOK Inc., operating cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||||||
| Average inventory processing period | 12 | 12 | 12 | 14 | 17 | 18 | 17 | 30 | 30 | 31 | 26 | 32 | 35 | 23 | 27 | 24 | 16 | 16 | 17 | — | — | — | |||||||
| Average receivable collection period | 19 | 20 | 25 | 28 | 30 | 33 | 32 | 40 | 35 | 35 | 35 | 30 | 25 | 19 | 30 | 25 | 21 | 24 | 24 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Operating cycle1 | 31 | 32 | 37 | 42 | 47 | 51 | 49 | 70 | 65 | 66 | 61 | 62 | 60 | 42 | 57 | 49 | 37 | 40 | 41 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 49 | 45 | 45 | 50 | 62 | 61 | 58 | 62 | 69 | 75 | 66 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 32 | 32 | 39 | 42 | 53 | 61 | 63 | 66 | 70 | 91 | 73 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 56 | 58 | 64 | 60 | 86 | 86 | 85 | 86 | 95 | 115 | 82 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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 cycle = Average inventory processing period + Average receivable collection period
= 12 + 19 = 31
2 Click competitor name to see calculations.
The data reveals notable fluctuations in the inventory processing period, receivable collection period, and overall operating cycle over the observed quarters.
- Average Inventory Processing Period
- The inventory processing period shows significant variability. Starting from 17 days in early 2019, it saw a moderate decline to 16 days before rising sharply to a peak of 35 days in the third quarter of 2020. Following this peak, the period gradually decreased, stabilizing around 30 days through 2021. A pronounced improvement occurred in 2022, with the period dropping steadily to reach 12 days by mid-2023, indicating enhanced efficiency in inventory management towards the end of the period.
- Average Receivable Collection Period
- Receivables collection demonstrates a generally increasing trend from about 24 days in the first half of 2019 to around 35-40 days in late 2020 and early 2021, suggesting a lengthening in the time taken to collect receivables. After peaking, a subsequent downtrend ensued, bringing the period back down to 19 days by mid-2023. This pattern suggests an initial deterioration in collections efficiency followed by progressive improvement.
- Operating Cycle
- The operating cycle, which encompasses inventory processing and receivable collection periods, reflected the combined trends of its components. It increased from approximately 41 days in early 2019 to a maximum plateau near 70 days in late 2021, indicating a longer time to convert resources into cash. From that high point, there was a clear and steady decline to just over 30 days by mid-2023, demonstrating substantial gains in overall operational efficiency.
Overall, the data suggests that the company experienced periods of operational challenges that extended inventory processing and receivables collections, particularly between 2019 and 2021. Since then, there have been marked improvements leading to enhanced cash flow dynamics and operational responsiveness as evidenced by reductions across all measured cycle periods through 2023.
Average Payables Payment Period
ONEOK Inc., average payables payment period 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 | |||||||||||||||||||||||||||||
| Payables turnover | 16.47 | 15.73 | 13.17 | 11.05 | 8.84 | 8.38 | 9.20 | 6.63 | 7.01 | 6.40 | 7.10 | 8.45 | 7.18 | 8.23 | 5.61 | 6.47 | 9.32 | 8.77 | 8.43 | — | — | — | |||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||||||||
| Average payables payment period1 | 22 | 23 | 28 | 33 | 41 | 44 | 40 | 55 | 52 | 57 | 51 | 43 | 51 | 44 | 65 | 56 | 39 | 42 | 43 | — | — | — | |||||||
| Benchmarks (no. days) | |||||||||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 32 | 28 | 29 | 35 | 44 | 42 | 39 | 42 | 46 | 49 | 42 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 25 | 25 | 29 | 30 | 33 | 33 | 40 | 42 | 45 | 62 | 52 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 41 | 36 | 40 | 37 | 56 | 59 | 55 | 61 | 66 | 76 | 61 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 16.47 = 22
2 Click competitor name to see calculations.
- Payables Turnover Ratio
- The payables turnover ratio was first recorded at 8.43 in March 2019 and displayed a generally fluctuating trend through the subsequent quarters. After peaking slightly at 9.32 in September 2019, it declined to a low of 5.61 by March 2020. From mid-2020 onwards, the ratio demonstrated a generally upward trend, reaching a value of 16.47 by June 2023. This indicates an overall improvement in the company's efficiency in managing its payables over the observed period, with significant acceleration particularly in 2022 and early 2023.
- Average Payables Payment Period (Days)
- The average payables payment period showed an inverse relationship to the payables turnover ratio, starting at 43 days in March 2019. It increased notably to 65 days by March 2020, suggesting a slower payment cycle during that period. Afterward, the period gradually decreased over the following years, reaching the lowest point of 22 days by June 2023. This reduction reflects a shortening of the time taken to settle payables, reinforcing the enhanced payables turnover efficiency observed.
- Overall Trend Analysis
- The data suggests an initial phase of decreasing efficiency in payables management around early 2020, likely indicated by the decrease in turnover ratio and increase in payment period. However, from mid-2020 forward, there is a consistent and marked improvement in managing payables, with faster payment cycles and increased payables turnover ratios. The acceleration in the final two years of the data indicates more aggressive or efficient credit and payment management strategies being implemented.
Cash Conversion Cycle
ONEOK Inc., cash conversion cycle calculation (quarterly data)
No. days
| 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 | |||||||||||||||||||||||||||||
| Average inventory processing period | 12 | 12 | 12 | 14 | 17 | 18 | 17 | 30 | 30 | 31 | 26 | 32 | 35 | 23 | 27 | 24 | 16 | 16 | 17 | — | — | — | |||||||
| Average receivable collection period | 19 | 20 | 25 | 28 | 30 | 33 | 32 | 40 | 35 | 35 | 35 | 30 | 25 | 19 | 30 | 25 | 21 | 24 | 24 | — | — | — | |||||||
| Average payables payment period | 22 | 23 | 28 | 33 | 41 | 44 | 40 | 55 | 52 | 57 | 51 | 43 | 51 | 44 | 65 | 56 | 39 | 42 | 43 | — | — | — | |||||||
| Short-term Activity Ratio | |||||||||||||||||||||||||||||
| Cash conversion cycle1 | 9 | 9 | 9 | 9 | 6 | 7 | 9 | 15 | 13 | 9 | 10 | 19 | 9 | -2 | -8 | -7 | -2 | -2 | -2 | — | — | — | |||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||||||||
| Chevron Corp. | 17 | 17 | 16 | 15 | 18 | 19 | 19 | 20 | 23 | 26 | 24 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| ConocoPhillips | 7 | 7 | 10 | 12 | 20 | 28 | 23 | 24 | 25 | 29 | 21 | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Occidental Petroleum Corp. | 15 | 22 | 24 | 23 | 30 | 27 | 30 | 25 | 29 | 39 | 21 | — | — | — | — | — | — | — | — | — | — | — | |||||||
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 12 + 19 – 22 = 9
2 Click competitor name to see calculations.
- Average Inventory Processing Period
- The period exhibits variability over the observed quarters. Starting at 17 days in early 2019, the duration fluctuated moderately, peaking at 35 days in the third quarter of 2020. Thereafter, the period shows a consistent decline, reaching 12 days by mid-2023. This trend suggests improvements in inventory turnover and potentially more efficient inventory management in recent periods.
- Average Receivable Collection Period
- The receivable collection period varied noticeably throughout the timeframe. Initially stable at around 24 days in early 2019, it increased, reaching a maximum of 40 days in late 2021. Following this peak, there is a clear downward trend to 19 days by mid-2023. This decline indicates enhanced collection efficiency and possibly tighter credit policies or improved customer payment behavior.
- Average Payables Payment Period
- The payables payment period showed significant fluctuations, starting around 43 days in early 2019 and rising to a maximum of 65 days by late 2019. Subsequently, the payment period showed a decreasing pattern, dropping steadily to 22 days by mid-2023. This reduction may denote a strategic shift toward faster payment of obligations or changes in supplier terms.
- Cash Conversion Cycle
- The cash conversion cycle values reveal an initial negative or near-zero state around -2 to -8 days from early 2019 to late 2019, reflecting favorable working capital management. However, the cycle shifted upward from 2020, peaking at 19 days in the third quarter of 2020, and subsequently stabilized around 9 to 15 days through 2021 and 2022. In 2023, the cycle settled consistently at 9 days. Overall, the trend indicates some tightening in working capital efficiency after 2019, with improvement and stabilization in the most recent quarters.