Targa Resources Inc (TRGP)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 157,300 | 141,700 | 219,000 | 158,500 | 242,800 |
| Short-term investments | US$ in thousands | — | 111,900 | 179,900 | 43,100 | 85,500 |
| Total current liabilities | US$ in thousands | 3,172,600 | 2,760,900 | 3,066,700 | 2,298,500 | 1,779,400 |
| Cash ratio | 0.05 | 0.09 | 0.13 | 0.09 | 0.18 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($157,300K
+ $—K)
÷ $3,172,600K
= 0.05
The cash ratio for Targa Resources Inc has shown fluctuations over the past five years. As of December 31, 2020, the cash ratio stood at 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities. However, by December 31, 2024, the cash ratio had decreased to 0.05, suggesting a decline in the company's ability to cover its short-term obligations with its available cash.
It is important to note that a higher cash ratio is generally preferred as it indicates a stronger liquidity position and ability to meet current financial obligations. Conversely, a declining cash ratio may raise concerns about the company's liquidity risk and ability to manage short-term liabilities effectively.
Overall, Targa Resources Inc's cash ratio trend warrants further investigation to assess the factors contributing to the fluctuation and to ensure the company maintains a healthy liquidity position in the future.
Peer comparison
Dec 31, 2024