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.