Targa Resources Inc (TRGP)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,463,200 | 17,459,100 | 14,603,300 | 7,963,700 | 6,118,500 |
| Inventory | US$ in thousands | 371,500 | 393,800 | 153,400 | 181,500 | 161,500 |
| Inventory turnover | 30.86 | 44.33 | 95.20 | 43.88 | 37.89 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,463,200K ÷ $371,500K
= 30.86
The inventory turnover ratio for Targa Resources Corp has fluctuated over the past five years. The ratio indicates how efficiently the company is managing its inventory by showing how many times the inventory is sold and replaced during a specific period.
In 2023, the inventory turnover ratio was 28.74, a decrease from the previous year's ratio of 42.87. This suggests that the company took longer to sell and replace its inventory in 2023 compared to 2022, indicating a potential inefficiency in managing its inventory levels.
Looking back, in 2021, Targa Resources Corp had a significantly higher inventory turnover ratio of 89.50, indicating that the company was more efficient in managing its inventory that year. However, in 2020 and 2019, the ratios were 28.13 and 37.89, respectively, showing a similar level of inventory turnover efficiency as in 2023.
Overall, Targa Resources Corp's inventory turnover ratio has shown variability over the years, with fluctuations in the company's ability to efficiently manage its inventory. Further analysis of the company's inventory management practices and industry-specific factors may provide insights into the reasons for these fluctuations.
Peer comparison
Dec 31, 2023