Targa Resources Inc (TRGP)
Days of inventory on hand (DOH)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Inventory turnover | 30.86 | 44.33 | 95.20 | 43.88 | 37.89 | |
| DOH | days | 11.83 | 8.23 | 3.83 | 8.32 | 9.63 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 30.86
= 11.83
The Days of Inventory on Hand (DOH) for Targa Resources Corp has varied over the past five years.
In 2023, the DOH stood at 12.70 days, indicating that on average, the company held inventory for approximately 12.70 days before selling it. This represents an increase from the previous year's figure of 8.51 days.
The significant increase in 2023 suggests that Targa Resources Corp may be facing challenges in effectively managing its inventory levels, which could potentially lead to higher carrying costs and reduced liquidity.
Comparing this to 2021, where the DOH was at 4.08 days, we see a sharp increase in 2023, indicating a potential buildup of inventory levels that could impact the company's working capital efficiency.
In 2020 and 2019, the DOH figures were 12.98 days and 9.63 days, respectively, showing fluctuating inventory management practices over the years.
Overall, it is essential for Targa Resources Corp to monitor and optimize its inventory levels to ensure efficient working capital management and improved financial performance in the future.
Peer comparison
Dec 31, 2023