Targa Resources Inc (TRGP)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 38.87 | 31.82 | 41.18 | 56.87 | 33.04 | 23.16 | 44.80 | 108.25 | 45.65 | 40.55 | 90.79 | 163.70 | 95.18 | 37.21 | 144.15 | 147.30 | 32.92 | 22.75 | 27.45 | 65.41 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 128.53 | — | 460.14 |
Based on the provided data, we can analyze the activity ratios of Targa Resources Inc as follows:
1. Inventory Turnover Ratio: This ratio indicates how efficiently the company manages its inventory by measuring how many times the company's inventory is sold and replaced over a specific period. Targa Resources Inc's inventory turnover fluctuated over the years, ranging from a low of 22.75 to a high of 163.70. The significant increase in inventory turnover from 22.75 in September 2020 to 163.70 in March 2022 signifies an improvement in inventory management efficiency during this period.
2. Receivables Turnover: Unfortunately, data for this ratio is unavailable for Targa Resources Inc across all the reported periods. Receivables turnover ratio would have provided insights into how quickly the company collects its accounts receivable, indicating its efficiency in managing credit sales.
3. Payables Turnover: Similar to receivables turnover, data for payables turnover ratio is also not available for Targa Resources Inc throughout the reported periods. This ratio would have shed light on how quickly the company pays off its trade payables.
4. Working Capital Turnover: This ratio measures how effectively the company utilizes its working capital to generate sales. Targa Resources Inc's working capital turnover was reported at 460.14 on March 31, 2020, which indicates that the company generated $460.14 in revenue for every dollar of working capital invested. However, data for this ratio is absent in subsequent periods, making it challenging to assess the trend in working capital efficiency over time.
In conclusion, while the inventory turnover ratio showed significant improvements in efficiency over the years, the lack of data for receivables turnover, payables turnover, and working capital turnover limits a comprehensive analysis of Targa Resources Inc's activity ratios.
Average number of days
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 9.39 | 11.47 | 8.86 | 6.42 | 11.05 | 15.76 | 8.15 | 3.37 | 8.00 | 9.00 | 4.02 | 2.23 | 3.83 | 9.81 | 2.53 | 2.48 | 11.09 | 16.04 | 13.30 | 5.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Targa Resources Inc's Days of Inventory on Hand (DOH) ratio has shown fluctuating trends over the past few years. The company's DOH varied between a low of 2.23 days on March 31, 2022, and a high of 16.04 days on September 30, 2020. However, the DOH has generally been quite low, indicating that Targa Resources has been efficient in managing its inventory levels.
On the other hand, there is no data available for the Days of Sales Outstanding (DSO) and Number of Days of Payables ratios for Targa Resources Inc. as the values are represented as "— days" for all periods provided in the dataset. This lack of information makes it challenging to assess the company's effectiveness in collecting receivables and managing payables.
In conclusion, based on the available data for Targa Resources Inc, it appears that the company has been relatively efficient in managing its inventory levels as indicated by its low Days of Inventory on Hand ratios. However, the absence of information on DSO and payables ratios limits a comprehensive evaluation of the company's overall activity performance.
Long-term
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | — | — | — | — | — | 1.07 | 1.20 | 1.42 | 1.47 | 1.59 | 1.76 | 1.57 | 1.45 | 1.18 | 0.98 | 0.82 | 0.68 | 0.66 | 0.64 | 0.68 |
| Total asset turnover | 0.72 | 0.74 | 0.77 | 0.77 | 0.73 | 0.81 | 0.92 | 1.08 | 1.07 | 1.13 | 1.36 | 1.19 | 1.11 | 0.88 | 0.76 | 0.63 | 0.52 | 0.51 | 0.50 | 0.53 |
The fixed asset turnover ratio for Targa Resources Inc has seen an increasing trend from March 31, 2020, to June 30, 2022, indicating that the company is generating more revenue from its fixed assets over time. However, there was a slight decline in the ratio from June 30, 2022, to March 31, 2023, followed by a more significant decrease till December 31, 2023. The fixed asset turnover ratio seems to have stabilized after that, showing values around 1.4 to 1.6.
On the other hand, the total asset turnover ratio demonstrates a similar pattern with a rise in performance up to December 31, 2021, followed by fluctuations through March 31, 2023. Despite these fluctuations, the total asset turnover ratio has generally shown an increasing trend, indicating that the company is generating more revenue relative to its total assets.
Overall, the ratios suggest that Targa Resources Inc is efficiently utilizing both its fixed and total assets to generate revenues, with some fluctuations in performance observed in recent periods.