Targa Resources Inc (TRGP)
Days of inventory on hand (DOH)
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 30.59 | 21.95 | 42.52 | 104.01 | 44.05 | 30.25 | 67.03 | 114.95 | 64.14 | 34.91 | 133.22 | 133.50 | 42.36 | 29.49 | 35.04 | 81.07 | 37.89 | 30.46 | 36.47 | 40.54 | |
| DOH | days | 11.93 | 16.63 | 8.58 | 3.51 | 8.29 | 12.07 | 5.45 | 3.18 | 5.69 | 10.46 | 2.74 | 2.73 | 8.62 | 12.38 | 10.42 | 4.50 | 9.63 | 11.98 | 10.01 | 9.00 |
December 31, 2023 calculation
DOH = 365 ÷ Inventory turnover
= 365 ÷ 30.59
= 11.93
Targa Resources Corp's days of inventory on hand (DOH) fluctuated over the past eight quarters, indicating varying efficiency in managing inventory levels. In Q4 2023, the DOH was 12.70 days, showing an increase from the previous quarter's 17.63 days. The higher DOH suggests that the company may be holding more inventory on hand, which could tie up capital and potentially indicate slower inventory turnover.
Comparing Q4 2023 to the same quarter in the previous year, there has been an increase in DOH from 8.51 days in Q4 2022 to 12.70 days in Q4 2023, which may require further investigation to understand the drivers behind this change.
Over the past two years, there have been instances of relatively low DOH such as in Q1 and Q2 2022, which were 2.36 days and 4.23 days respectively. These low DOH figures indicate efficient inventory management and quick turnover, which can free up capital and reduce carrying costs.
Overall, Targa Resources Corp should continue monitoring its DOH metric to ensure optimal inventory levels that balance the trade-off between holding too much inventory and facing potential stockouts.
Peer comparison
Dec 31, 2023