Targa Resources Inc (TRGP)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,060,300 | 20,929,800 | 16,949,800 | 8,260,300 | 8,671,100 |
| Receivables | US$ in thousands | 1,471,000 | 1,408,400 | 1,331,900 | 862,800 | 855,000 |
| Receivables turnover | 10.92 | 14.86 | 12.73 | 9.57 | 10.14 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $16,060,300K ÷ $1,471,000K
= 10.92
The receivables turnover ratio for Targa Resources Corp has fluctuated over the past five years. In 2023, the receivables turnover ratio stands at 10.92, which indicates that the company collected its accounts receivable approximately 10.92 times during the year. This ratio has decreased from the previous year, suggesting a slower collection of receivables compared to the prior period.
Comparing to 2021 and 2019, where the ratios were 12.73 and 10.14 respectively, the current turnover indicates a lower efficiency in collecting receivables than in those years. However, in 2022, the company exhibited a higher receivables turnover ratio of 14.86, illustrating a more efficient collection of outstanding receivables compared to 2023.
Overall, the trend in receivables turnover for Targa Resources Corp shows variability, indicating the company's effectiveness in managing its accounts receivable collection process has not been consistent over the past five years. This analysis suggests that further examination of the company's accounts receivable management practices may be warranted to improve efficiency in collecting outstanding receivables.
Peer comparison
Dec 31, 2023