Targa Resources Inc (TRGP)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 16,060,300 | 16,375,600 | 17,839,100 | 20,491,200 | 20,929,800 | 21,816,600 | 20,916,200 | 18,276,300 | 16,949,900 | 14,081,100 | 11,736,500 | 9,844,100 | 8,260,300 | 8,161,400 | 7,948,800 | 8,420,600 | 8,671,100 | 8,794,800 | 9,878,700 | 10,327,800 |
| Property, plant and equipment | US$ in thousands | 15,806,400 | 15,333,500 | 14,890,400 | 14,470,000 | 14,214,600 | 13,716,400 | 11,878,300 | 11,653,000 | 11,667,700 | 11,922,400 | 11,996,600 | 12,060,700 | 12,173,600 | 12,292,800 | 12,417,400 | 12,411,800 | 14,548,500 | 14,696,900 | 14,368,800 | 13,703,400 |
| Fixed asset turnover | 1.02 | 1.07 | 1.20 | 1.42 | 1.47 | 1.59 | 1.76 | 1.57 | 1.45 | 1.18 | 0.98 | 0.82 | 0.68 | 0.66 | 0.64 | 0.68 | 0.60 | 0.60 | 0.69 | 0.75 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $16,060,300K ÷ $15,806,400K
= 1.02
The fixed asset turnover ratio for Targa Resources Corp has been showing a declining trend over the past quarters, dropping from 1.47 in Q4 2022 to 1.02 in Q4 2023. This indicates that the company's ability to generate revenue from its fixed assets has been decreasing.
A fixed asset turnover ratio of less than 1 suggests inefficiency in utilizing fixed assets to generate revenue. In this case, the downward trend in the ratio may indicate that either the company's fixed assets are not being utilized effectively to generate sales, or that the company's sales are declining relative to its fixed assets.
It is important for Targa Resources Corp to closely monitor and analyze this trend to identify the underlying causes and take appropriate measures to improve the efficiency of its fixed asset utilization. This could involve optimizing asset use, exploring opportunities for asset disposal or reallocation, or implementing strategies to boost sales and revenue generation from existing fixed assets.
Peer comparison
Dec 31, 2023