Targa Resources Inc (TRGP)

Payables 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
Payables US$ in thousands 1,574,900 1,448,800 1,402,300 833,800 954,800
Payables turnover 7.28 12.05 10.41 9.55 6.41

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $11,463,200K ÷ $1,574,900K
= 7.28

The payables turnover ratio for Targa Resources Corp has fluctuated over the years, indicating variability in the company's ability to efficiently manage its payables.

In 2023, the payables turnover ratio was 6.78, which suggests that Targa Resources Corp was able to turn over its accounts payable approximately 6.78 times during the year. This represents a decrease from the previous year's ratio of 11.65. The decline in the ratio could indicate a slower rate of paying off suppliers and other creditors in 2023 compared to 2022.

Comparing the 2023 payables turnover ratio to 2021 and 2020, we see that the company's performance was relatively consistent in managing its payables during these years, with ratios of 9.79 in 2021 and 6.12 in 2020.

However, it is important to note that the data for 2019 is not available, making it difficult to provide a full trend analysis. Overall, fluctuations in the payables turnover ratio can reflect changes in the company's payment practices, supplier relationships, or overall financial health.


Peer comparison

Dec 31, 2023