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ONEOK (OKE) Beneish M-Score

: -2.02 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ONEOK's Beneish M-Score or its related term are showing as below:

OKE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37   Med: -2.6   Max: -1.74
Current: -2.02

During the past 13 years, the highest Beneish M-Score of ONEOK was -1.74. The lowest was -3.37. And the median was -2.60.


ONEOK Beneish M-Score Historical Data

The historical data trend for ONEOK's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ONEOK Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.83 -2.73 -1.74 -2.47 -2.02

ONEOK Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.47 - - - -2.02

Competitive Comparison

For the Oil & Gas Midstream subindustry, ONEOK's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ONEOK Beneish M-Score Distribution

For the Oil & Gas industry and Energy sector, ONEOK's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ONEOK's Beneish M-Score falls into.



ONEOK Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of ONEOK for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.4095+0.528 * 0.6107+0.404 * 2.4799+0.892 * 0.7896+0.115 * 1.3239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * -0.042809-0.327 * 0.8605
=-2.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $1,705 Mil.
Revenue was $17,677 Mil.
Gross Profit was $4,979 Mil.
Total Current Assets was $3,108 Mil.
Total Assets was $44,266 Mil.
Property, Plant and Equipment(Net PPE) was $32,697 Mil.
Depreciation, Depletion and Amortization(DDA) was $769 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $3,452 Mil.
Long-Term Debt & Capital Lease Obligation was $21,257 Mil.
Net Income was $2,659 Mil.
Gross Profit was $133 Mil.
Cash Flow from Operations was $4,421 Mil.
Total Receivables was $1,532 Mil.
Revenue was $22,387 Mil.
Gross Profit was $3,851 Mil.
Total Current Assets was $2,548 Mil.
Total Assets was $24,379 Mil.
Property, Plant and Equipment(Net PPE) was $19,952 Mil.
Depreciation, Depletion and Amortization(DDA) was $626 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $3,051 Mil.
Long-Term Debt & Capital Lease Obligation was $12,764 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(1705 / 17677) / (1532 / 22387)
=0.096453 / 0.068433
=1.4095

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(3851 / 22387) / (4979 / 17677)
=0.172019 / 0.281665
=0.6107

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3108 + 32697) / 44266) / (1 - (2548 + 19952) / 24379)
=0.19114 / 0.077075
=2.4799

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=17677 / 22387
=0.7896

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(626 / (626 + 19952)) / (769 / (769 + 32697))
=0.030421 / 0.022979
=1.3239

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(0 / 17677) / (0 / 22387)
=0 / 0
=1

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((21257 + 3452) / 44266) / ((12764 + 3051) / 24379)
=0.558194 / 0.648714
=0.8605

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2659 - 133 - 4421) / 44266
=-0.042809

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ONEOK has a M-score of -2.02 suggests that the company is unlikely to be a manipulator.


ONEOK (OKE) Business Description

Address
100 West Fifth Street, Tulsa, OK, USA, 74103
Oneok provides natural gas gathering, processing, storage, and transportation as well as natural gas liquids transportation and fractionation. It owns extensive assets in the midcontinent, Permian, and Rocky Mountain regions.
Executives
Eduardo A Rodriguez director 100 WEST FIFTH STREET, TULSA OK 74103
Lyndon C Taylor officer: See Remarks 333 W. SHERIDAN AVE, OKLAHOMA CITY OK 73102
James R Hoskin officer: See Remarks ONE WILLIAMS CENTER, SUITE 2800, TULSA OK 74172
Wayne Thomas Smith director 1940 AIR PRODUCTS BLVD., ALLENTOWN PA 18106
Lori Gobillot director 5103 CITY WEST BLVD., 4TH FLOOR, HOUSTON TX 77042
Janet L. Hogan officer: Senior Vice President HR 2307 OREGON STREET, OSHKOSH WI 54902
Pierce Norton director, officer: President & CEO 100 W. 5TH STREET, TULSA OK 74103
Brian L Derksen director 100 W. 5TH ST., TULSA OK 74103
Scott D Schingen officer: Senior VP Operations 100 WEST 5TH STREET, TULSA OK 74103
Mark W Helderman director 100 W. 5TH ST., TULSA OK 74102
Mary M Spears officer: VP & CHIEF ACCOUNTING OFFICER 100 W. 5TH ST., TULSA OK 74103
Gary David Parker director 100 W. 5TH ST., TULSA OK 74103
Terry K Spencer officer: OKS - COO 100 W. 5TH ST., TULSA OK 74103
John William Gibson director, officer: CEO 100 WEST FIFTH STREET, TULSA OK 74103
Hulse Walter S Iii officer: EVP STRATEGIC PLNG & CORP DEV 100 W. 5TH ST., TULSA OK 74103

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