Targa Resources Inc (TRGP)
Payables 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 |
| Payables | US$ in thousands | 1,574,900 | 1,581,300 | 1,173,300 | 1,255,300 | 1,448,800 | 1,806,400 | 1,901,000 | 1,803,500 | 1,402,300 | 1,652,300 | 1,034,500 | 947,700 | 833,800 | 617,700 | 607,700 | 583,400 | 954,800 | 976,500 | 984,500 | 1,167,300 |
| Payables turnover | 7.22 | 7.44 | 11.32 | 12.94 | 11.97 | 7.89 | 7.13 | 6.21 | 7.02 | 6.69 | 8.45 | 7.27 | 9.22 | 12.49 | 12.64 | 13.92 | 6.41 | 6.58 | 7.60 | 6.87 |
December 31, 2023 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $11,364,300K ÷ $1,574,900K
= 7.22
The payables turnover ratio for Targa Resources Corp has shown some fluctuation over the last eight quarters. In Q1 2023, the company had a payables turnover ratio of 12.50, indicating that it paid off its accounts payable 12.50 times during that quarter. This was a significant increase from the previous quarter, where the ratio was 10.84.
The trend over the last two years shows an overall improvement in the management of accounts payable turnover, with generally increasing ratios. This suggests that the company is becoming more efficient in managing its accounts payable obligations, possibly through better vendor negotiations, improved cash flow management, or more streamlined payment processes.
It is important to note that a high payables turnover ratio may also indicate that the company is aggressively seeking to delay payments to suppliers, which could strain supplier relationships if not managed effectively.
Overall, while Targa Resources Corp's payables turnover ratios have shown variability, the general trend signals improvement in managing its accounts payable effectively.
Peer comparison
Dec 31, 2023