Targa Resources Inc (TRGP)
Days of sales outstanding (DSO)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Receivables turnover | 10.92 | 14.86 | 12.73 | 9.57 | 10.14 | |
| DSO | days | 33.43 | 24.56 | 28.68 | 38.12 | 35.99 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.92
= 33.43
The Days of Sales Outstanding (DSO) ratio for Targa Resources Corp has shown some fluctuations over the past five years. In 2023, the DSO was 33.43 days, indicating that on average, it takes the company approximately 33 days to collect its accounts receivable. This represents an increase compared to 2022 when the DSO was 24.56 days, suggesting a potential slowdown in collecting payments from customers.
When looking at the trend over the past five years, the DSO was the lowest in 2022 at 24.56 days, showing efficient management of accounts receivable collection. However, in 2020, the DSO spiked to 38.12 days, indicating a longer period for collecting payments, which could potentially signal challenges in managing accounts receivable during that period.
Overall, it is important for Targa Resources Corp to closely monitor and manage its DSO to ensure efficient collection of accounts receivable and maintain healthy cash flow levels. Fluctuations in the DSO ratio can provide insights into the company's credit and collection policies as well as its ability to manage working capital effectively.
Peer comparison
Dec 31, 2023