Targa Resources Inc (TRGP)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	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
Inventory turnover		38.87	31.82	41.18	56.87	33.04	23.16	44.80	108.25	45.65	40.55	90.79	163.70	95.18	37.21	144.15	147.30	32.92	22.75	27.45	65.41
DOH	days	9.39	11.47	8.86	6.42	11.05	15.76	8.15	3.37	8.00	9.00	4.02	2.23	3.83	9.81	2.53	2.48	11.09	16.04	13.30	5.58

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 38.87
= 9.39

The days of inventory on hand (DOH) for Targa Resources Inc have shown fluctuations over the years based on the provided data.

The DOH metric indicates how many days, on average, it takes for the company to sell its inventory. A lower number of days suggests that the company is efficiently managing its inventory, while a higher number may indicate excess or slow-moving inventory.

From March 31, 2020, to December 31, 2020, the DOH increased from 5.58 days to 11.09 days, indicating a slower turnover of inventory during this period. However, there was a significant decrease in DOH to 2.48 days by March 31, 2021, which suggests a more efficient inventory management.

Subsequently, there were fluctuations in DOH, with periods of lower and higher numbers. For instance, by September 30, 2021, the DOH increased to 9.81 days, indicating a potential increase in inventory levels or a slowdown in sales. The DOH dropped to 2.23 days by March 31, 2022, before increasing again to 15.76 days by September 30, 2023.

Overall, the DOH for Targa Resources Inc has shown varying trends, which could be influenced by factors such as changes in demand, supply chain disruptions, or inventory management strategies. Continuous monitoring of the DOH ratio is crucial for assessing the company's inventory management efficiency and identifying areas for improvement.