Targa Resources Inc (TRGP)
Receivables 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 16,060,300 | 16,375,600 | 17,839,100 | 20,491,200 | 20,929,800 | 21,816,600 | 20,916,200 | 18,276,300 | 16,949,900 | 14,081,100 | 11,736,500 | 9,844,100 | 8,260,300 | 8,161,400 | 7,948,800 | 8,420,600 | 8,671,100 | 8,794,800 | 9,878,700 | 10,327,800 |
| Receivables | US$ in thousands | 1,471,000 | 1,241,100 | 988,100 | 1,023,400 | 1,408,400 | 1,534,900 | 1,612,600 | 1,567,200 | 1,331,900 | 1,291,000 | 901,800 | 997,100 | 862,800 | 609,800 | 547,200 | 438,100 | 855,000 | 744,000 | 637,200 | 752,800 |
| Receivables turnover | 10.92 | 13.19 | 18.05 | 20.02 | 14.86 | 14.21 | 12.97 | 11.66 | 12.73 | 10.91 | 13.01 | 9.87 | 9.57 | 13.38 | 14.53 | 19.22 | 10.14 | 11.82 | 15.50 | 13.72 |
December 31, 2023 calculation
Receivables turnover = Revenue (ttm) ÷ Receivables
= $16,060,300K ÷ $1,471,000K
= 10.92
The receivables turnover ratio measures how efficiently a company is managing its accounts receivable by showing how many times a company collects its average accounts receivable balance during a period.
Based on the data provided, Targa Resources Corp has shown fluctuating trends in its receivables turnover ratio over the past eight quarters. In Q1 2022, the receivables turnover ratio was 11.66, indicating that Targa collected its accounts receivable balance approximately 11.66 times during that quarter.
Following Q1 2022, there was an increasing trend in the receivables turnover ratio, reaching its peak at 20.02 in Q1 2023. This implies that Targa was collecting its accounts receivable balance more frequently and efficiently during this period.
However, in Q2 and Q3 2023, the receivables turnover ratio decreased to 18.05 and 13.19, respectively, showcasing a slight decline in the effectiveness of the company in collecting its accounts receivable balances compared to the previous quarter.
In Q4 2023, the receivables turnover ratio decreased further to 10.92, indicating a significant drop in Targa's ability to collect its accounts receivable balance efficiently compared to the previous quarters.
Overall, the fluctuating trend in Targa Resources Corp's receivables turnover ratio suggests varying levels of efficiency in managing accounts receivable over the past eight quarters. Factors impacting this ratio could include changes in sales volume, credit policies, collection efforts, or customer payment behavior.
Peer comparison
Dec 31, 2023