Targa Resources Inc (TRGP)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	12,126,000	12,006,000	17,978,100	14,600,100	5,970,200
Inventory	US$ in thousands	334,300	371,500	393,800	153,400	181,500
Inventory turnover		36.27	32.32	45.65	95.18	32.89

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $12,126,000K ÷ $334,300K
= 36.27

Targa Resources Inc's inventory turnover has shown fluctuations over the five-year period from December 31, 2020, to December 31, 2024. The inventory turnover ratio indicates the efficiency with which the company manages its inventory levels.

In December 2020, the inventory turnover ratio was 32.89, reflecting that the company's inventory turned over approximately 32.89 times during that year. This suggests that the company was able to sell and replace its inventory nearly 33 times throughout the year.

By December 2021, the inventory turnover ratio significantly increased to 95.18, indicating a remarkable improvement in the efficiency of managing inventory. This sharp increase may imply better inventory control, faster sales, or adjustments in procurement strategies.

Subsequently, in December 2022, the inventory turnover ratio decreased to 45.65. Although lower than the previous year, this ratio still indicates a relatively efficient turnover of inventory, with the company selling and replenishing its inventory approximately 46 times during the year.

In December 2023, the inventory turnover ratio further decreased to 32.32, approaching the level observed in 2020. This reduction may suggest changes in demand, production, or inventory management practices that impacted the turnover rate.

Finally, by December 2024, the inventory turnover ratio increased to 36.27, indicating a slight improvement from the previous year but still lower than the peak observed in 2021. Overall, while there have been fluctuations, Targa Resources Inc has demonstrated varying levels of efficiency in managing its inventory turnover during the five-year period.