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.