Targa Resources Inc (TRGP)
Total asset 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 |
| Total assets | US$ in thousands | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 | 18,815,100 |
| Total asset turnover | 0.78 | 1.07 | 1.11 | 0.52 | 0.46 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $16,060,300K ÷ $20,671,800K
= 0.78
Targa Resources Corp's total asset turnover ratio has displayed fluctuations over the past five years. In 2023, the total asset turnover ratio decreased to 0.78 from 1.07 in 2022. This indicates that for every dollar of total assets, the company generated $0.78 in revenue in 2023. The decline in this ratio suggests that Targa Resources Corp's efficiency in utilizing its assets to generate revenue decreased during the year.
Comparing 2023 to the previous years, the total asset turnover ratio was the lowest in 2020 at 0.52 but improved in 2021 and 2022 to reach 1.11 and 1.07 respectively. The significant increase in 2021 followed by a slight decline in 2022 indicates that the company efficiently utilized its assets to generate revenue during those years.
However, the total asset turnover ratio was relatively low in 2019 at 0.46, indicating that the company faced challenges in efficiently generating revenue from its assets that year.
Overall, Targa Resources Corp's total asset turnover ratio has shown variability over the years, signaling fluctuations in the company's ability to generate revenue relative to its total assets. Further analysis of the company's operations and asset management practices may be necessary to understand the factors driving these fluctuations.
Peer comparison
Dec 31, 2023