Targa Resources Inc (TRGP)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	157,300	127,200	166,400	109,900	141,700	139,500	169,400	211,800	219,000	192,900	154,000	135,900	158,500	228,600	209,000	248,500	242,800	275,000	196,200	375,200
Short-term investments	US$ in thousands	—	75,000	62,800	72,600	111,900	84,200	0	—	179,900	185,800	80,800	22,000	43,100	82,700	76,800	83,200	714,000	110,100	95,200	—
Total current liabilities	US$ in thousands	3,172,600	2,627,300	2,890,600	2,814,500	2,760,900	2,682,100	2,320,600	2,466,600	3,066,700	3,393,700	3,153,400	2,910,400	2,298,500	2,868,300	2,102,100	1,765,000	1,779,400	1,380,900	1,319,700	1,196,000
Cash ratio		0.05	0.08	0.08	0.06	0.09	0.08	0.07	0.09	0.13	0.11	0.07	0.05	0.09	0.11	0.14	0.19	0.54	0.28	0.22	0.31

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 of Targa Resources Inc has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures a company's ability to cover its current liabilities with its cash and cash equivalents.

Targa's cash ratio started at 0.31 on March 31, 2020, indicating that it had $0.31 in cash and cash equivalents for every $1 of current liabilities. The ratio gradually decreased to 0.09 on December 31, 2021, which may suggest a potential liquidity challenge.

However, there was a slight improvement to 0.13 on December 31, 2022, before decreasing again to 0.05 on December 31, 2024. The lower cash ratios in 2023 and 2024 indicate that Targa may have had less cash available relative to its current liabilities during those periods.

Overall, Targa Resources Inc's cash ratio has fluctuated, showing both strengths and weaknesses in its liquidity position during the analyzed period. It is essential for investors and stakeholders to closely monitor the company's cash levels and liquidity management strategies to ensure its ability to meet short-term obligations.