Targa Resources Inc (TRGP)
Days of sales outstanding (DSO)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Receivables turnover | 10.92 | 13.19 | 18.05 | 20.02 | 14.86 | 14.21 | 12.97 | 11.66 | 12.73 | 10.91 | 13.01 | 9.87 | 9.57 | 13.38 | 14.53 | 19.22 | 10.14 | 11.82 | 15.50 | 13.72 | |
| DSO | days | 33.43 | 27.66 | 20.22 | 18.23 | 24.56 | 25.68 | 28.14 | 31.30 | 28.68 | 33.46 | 28.05 | 36.97 | 38.12 | 27.27 | 25.13 | 18.99 | 35.99 | 30.88 | 23.54 | 26.61 |
December 31, 2023 calculation
DSO = 365 ÷ Receivables turnover
= 365 ÷ 10.92
= 33.43
The days of sales outstanding (DSO) for Targa Resources Corp have shown a fluctuating trend over the past eight quarters. In Q4 2023, the DSO increased to 33.43 days from 27.66 days in Q3 2023, indicating a slower collection of accounts receivables. This rise follows a general upward trend since Q1 2023 when the DSO was at 18.23 days, which was the lowest point in the period under review.
Compared to the same quarter in the prior year, Q4 2022, there has been an increase in DSO from 24.56 days to 33.43 days. This suggests that Targa Resources Corp may be facing challenges in collecting payments from customers within a reasonable timeframe, which could impact their cash flow and liquidity position.
Analyzing the historical data, the DSO has generally been above 20 days, with peaks in Q4 2023 and Q2 2023. This indicates a relatively slower turnover of accounts receivables, potentially signaling credit or collection issues that require management's attention.
Overall, Targa Resources Corp should focus on improving its accounts receivable management processes to shorten DSO and enhance cash flow efficiency, thereby strengthening its financial position in the market.
Peer comparison
Dec 31, 2023