Targa Resources Inc (TRGP)
Total asset 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 |
| Total assets | US$ in thousands | 20,671,800 | 20,189,600 | 19,461,800 | 19,025,500 | 19,560,000 | 19,389,900 | 15,334,300 | 15,295,400 | 15,208,200 | 15,972,700 | 15,411,800 | 15,648,400 | 15,875,700 | 16,052,100 | 15,965,400 | 16,026,800 | 18,815,100 | 18,918,500 | 18,318,200 | 17,569,200 |
| Total asset turnover | 0.78 | 0.81 | 0.92 | 1.08 | 1.07 | 1.13 | 1.36 | 1.19 | 1.11 | 0.88 | 0.76 | 0.63 | 0.52 | 0.51 | 0.50 | 0.53 | 0.46 | 0.46 | 0.54 | 0.59 |
December 31, 2023 calculation
Total asset turnover = Revenue (ttm) ÷ Total assets
= $16,060,300K ÷ $20,671,800K
= 0.78
The total asset turnover ratio measures how effectively a company is utilizing its assets to generate revenue. In the case of Targa Resources Corp, the total asset turnover has been fluctuating over the past eight quarters, ranging from a low of 0.78 in Q4 2023 to a high of 1.36 in Q2 2022.
A total asset turnover ratio of less than 1 indicates that the company is not efficiently using its assets to generate sales, which was the case in Q4 2023 and Q3 2023. This may suggest that there is room for improvement in how the company manages and deploys its assets to increase revenue.
On the other hand, a total asset turnover ratio of greater than 1, as seen in Q1 2023, Q4 2022, Q3 2022, and Q2 2022, suggests that the company is generating more revenue relative to its total assets. This could be indicative of efficient asset management and effective utilization of resources to drive sales.
Overall, the fluctuation in Targa Resources Corp's total asset turnover ratio indicates varying levels of asset utilization efficiency over the quarters. Further analysis and comparison with industry benchmarks could provide deeper insights into the company's operational performance and asset management strategies.
Peer comparison
Dec 31, 2023