Targa Resources Inc (TRGP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Inventory turnover | 36.27 | 32.32 | 45.65 | 95.18 | 32.89 |
| Receivables turnover | — | — | — | — | — |
| Payables turnover | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — |
Targa Resources Inc's inventory turnover has shown significant improvement over the years, increasing from 32.89 in 2020 to 95.18 in 2021, then fluctuating between 45.65 and 36.27 in the following years. This indicates that the company is managing its inventory more efficiently, with a higher turnover implying that inventory is being sold or used more rapidly.
On the other hand, the company's receivables turnover, payables turnover, and working capital turnover ratios are not provided in the data, making it difficult to assess Targa Resources Inc's efficiency in collecting receivables, paying its suppliers, or converting working capital into revenue during the specified periods.
In conclusion, Targa Resources Inc's inventory turnover has shown positive trends suggesting improved inventory management efficiency, but a lack of data for receivables turnover, payables turnover, and working capital turnover ratios limits a comprehensive analysis of the company's overall activity efficiency.
Average number of days
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 10.06 | 11.29 | 8.00 | 3.83 | 11.10 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
The Days of Inventory on Hand (DOH) for Targa Resources Inc have shown some fluctuation over the years. In 2020, the company held inventory for an average of 11.10 days, which decreased to 3.83 days in 2021, indicating a significant improvement in inventory management efficiency. However, by 2023, the DOH increased to 11.29 days before slightly decreasing to 10.06 days in 2024. Overall, the company's inventory turnover has varied but remained within a reasonable range.
The Days of Sales Outstanding (DSO) data for Targa Resources Inc is not provided, suggesting that the company may not maintain credit sales or has a relatively quick collection period for its sales.
The Number of Days of Payables information is also not available, indicating that the company's payment terms to suppliers and vendors are not disclosed. This makes it challenging to assess the efficiency of the company's payables management.
In summary, Targa Resources Inc has seen fluctuations in its Days of Inventory on Hand over the years, implying changes in inventory management practices. The absence of data on Days of Sales Outstanding and Number of Days of Payables makes it difficult to provide a comprehensive analysis of the company's overall activity ratios.
Long-term
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Fixed asset turnover | — | — | 1.47 | 1.45 | 0.68 |
| Total asset turnover | 0.72 | 0.78 | 1.07 | 1.11 | 0.52 |
The fixed asset turnover ratio for Targa Resources Inc has shown a significant improvement over the years, increasing from 0.68 in 2020 to 1.47 in 2022. This indicates that the company is generating more revenue per dollar invested in fixed assets, reflecting improved efficiency in utilizing its long-term assets for revenue generation.
On the other hand, the total asset turnover ratio has also witnessed an upward trend from 0.52 in 2020 to 1.07 in 2022, demonstrating that Targa Resources Inc is generating more sales relative to its total assets. However, there was a slight decline in 2023 and 2024, possibly indicating a decrease in sales generated per dollar of total assets, which could be attributed to various factors such as changes in the company's sales strategies or asset base.
Overall, the upward trends in both fixed asset turnover and total asset turnover ratios suggest that Targa Resources Inc has been successful in efficiently utilizing its assets to drive revenue growth. However, the slight decline in the total asset turnover ratio in 2023 and 2024 may warrant further investigation to identify any underlying causes and potential areas for improvement.