Targa Resources Inc (TRGP)
Inventory 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 11,364,300 | 11,768,800 | 13,278,200 | 16,246,600 | 17,347,900 | 14,256,300 | 13,552,900 | 11,207,300 | 9,838,400 | 11,059,600 | 8,739,400 | 6,888,800 | 7,688,100 | 7,717,400 | 7,683,700 | 8,123,200 | 6,118,500 | 6,424,100 | 7,479,500 | 8,023,200 |
| Inventory | US$ in thousands | 371,500 | 536,200 | 312,300 | 156,200 | 393,800 | 471,300 | 202,200 | 97,500 | 153,400 | 316,800 | 65,600 | 51,600 | 181,500 | 261,700 | 219,300 | 100,200 | 161,500 | 210,900 | 205,100 | 197,900 |
| Inventory turnover | 30.59 | 21.95 | 42.52 | 104.01 | 44.05 | 30.25 | 67.03 | 114.95 | 64.14 | 34.91 | 133.22 | 133.50 | 42.36 | 29.49 | 35.04 | 81.07 | 37.89 | 30.46 | 36.47 | 40.54 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $11,364,300K ÷ $371,500K
= 30.59
Targa Resources Corp's inventory turnover has displayed fluctuations over the past eight quarters. In Q1 2022, the company's inventory turnover was highly efficient at 154.84, indicating that the company effectively sold and replaced its inventory 154.84 times during the quarter. However, there was a significant drop in efficiency in Q4 2022, with the inventory turnover ratio declining to 42.87.
Throughout 2023, the inventory turnover ratio continued to fluctuate. Q2 2023 saw a notable increase in efficiency to 40.73, followed by a decrease in Q3 2023 to 20.71. The most recent quarter, Q4 2023, displayed a substantial improvement in inventory turnover to 28.74, albeit not reaching the levels seen in Q1 2022.
Overall, Targa Resources Corp's inventory turnover has demonstrated variability, indicating potential challenges in managing inventory levels and sales. It is essential for the company to closely monitor and optimize its inventory management practices to ensure efficient utilization of resources and maintain healthy financial performance.
Peer comparison
Dec 31, 2023
Dec 31, 2023