Targa Resources Inc (TRGP)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,060,300 | 20,929,800 | 16,949,800 | 8,260,300 | 8,671,100 |
| Property, plant and equipment | US$ in thousands | 15,806,400 | 14,214,600 | 11,667,700 | 12,173,600 | 14,548,500 |
| Fixed asset turnover | 1.02 | 1.47 | 1.45 | 0.68 | 0.60 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $16,060,300K ÷ $15,806,400K
= 1.02
The fixed asset turnover for Targa Resources Corp has exhibited fluctuations over the past five years. In 2023, the ratio stands at 1.02, a decrease from the previous year's 1.47. This indicates that the company generated $1.02 in revenue for every dollar invested in fixed assets in 2023, showing a dip in efficiency compared to 2022.
Looking further back, there was a slight decrease in fixed asset turnover from 1.45 in 2021 to 1.47 in 2022. The ratio experienced a significant improvement in 2021 compared to 2020, where it was at 0.68. This surge suggests that in 2021, Targa Resources Corp efficiently utilized its fixed assets to generate revenue.
It is worth noting that there was a considerable improvement in fixed asset turnover from 2019 to 2020, where the ratio increased from 0.60 to 0.68. This jump indicates that the company became more efficient in generating revenue from its fixed assets in 2020 compared to the previous year.
Overall, although the fixed asset turnover of Targa Resources Corp has fluctuated over the years, the company has demonstrated varying levels of efficiency in utilizing its fixed assets to generate revenue.
Peer comparison
Dec 31, 2023