Targa Resources Inc (TRGP)
Total asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 16,381,500 | 16,060,300 | 20,929,800 | 16,949,800 | 8,260,300 |
| Total assets | US$ in thousands | 22,734,100 | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 |
| Total asset turnover | 0.72 | 0.78 | 1.07 | 1.11 | 0.52 |
December 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $16,381,500K ÷ $22,734,100K
= 0.72
Total asset turnover is a key financial ratio that indicates how efficiently a company utilizes its assets to generate revenue.
In the case of Targa Resources Inc, we observe fluctuations in the total asset turnover ratio over the five-year period. The ratio increased from 0.52 in December 31, 2020, to 1.11 in December 31, 2021, indicating a significant improvement in asset utilization efficiency. This suggests that the company was able to generate more revenue relative to its total assets during this period.
However, the total asset turnover decreased to 1.07 by December 31, 2022, and further declined to 0.78 by December 31, 2023. These decreases may indicate a potential decline in the company's ability to efficiently utilize its assets to generate revenue.
The ratio continued to drop to 0.72 by December 31, 2024, suggesting that Targa Resources Inc faced challenges in optimizing its asset turnover efficiency.
Overall, the fluctuation in Targa Resources Inc total asset turnover ratio over the five-year period indicates varying levels of asset utilization efficiency, which may warrant further investigation into the company's operational effectiveness and strategic decision-making related to asset management.
Peer comparison
Dec 31, 2024