Targa Resources Inc (TRGP)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 141,700 | 219,000 | 158,500 | 242,800 | 331,100 |
| Short-term investments | US$ in thousands | 111,900 | 179,900 | 43,100 | 85,500 | 103,300 |
| Total current liabilities | US$ in thousands | 2,760,900 | 3,066,700 | 2,298,500 | 1,779,400 | 1,872,600 |
| Cash ratio | 0.09 | 0.13 | 0.09 | 0.18 | 0.23 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($141,700K
+ $111,900K)
÷ $2,760,900K
= 0.09
The cash ratio of Targa Resources Corp has experienced fluctuations over the past five years, ranging from 0.12 to 0.27. The cash ratio represents the company's ability to cover its short-term liabilities using its cash and cash equivalents.
In 2023, the cash ratio decreased to 0.13 from 0.18 in 2022, indicating a lower ability to cover short-term obligations with available cash. This might raise concerns about the company's liquidity position and its ability to meet immediate financial obligations.
Comparing to the previous years, the cash ratio was highest in 2019 at 0.27, which suggests a stronger cash position relative to short-term liabilities compared to recent years. On the other hand, the lowest cash ratio was recorded in 2021 at 0.12, indicating a potential liquidity strain during that period.
Overall, fluctuations in the cash ratio of Targa Resources Corp reflect changes in its liquidity position over the years, highlighting the importance of monitoring cash levels to ensure the company can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2023