Targa Resources Inc (TRGP)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 331,100 | 326,300 | 226,500 | 124,900 |
| Short-term investments | US$ in thousands | 111,900 | 84,200 | — | — | 179,900 | 185,800 | 80,800 | — | — | — | 685,000 | 695,000 | 714,000 | 718,000 | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 1,872,600 | 1,669,300 | 1,658,000 | 2,041,600 |
| Cash ratio | 0.09 | 0.08 | 0.07 | 0.09 | 0.13 | 0.11 | 0.07 | 0.05 | 0.07 | 0.08 | 0.43 | 0.53 | 0.54 | 0.72 | 0.15 | 0.31 | 0.18 | 0.20 | 0.14 | 0.06 |
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 measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.
Analyzing Targa Resources Corp's cash ratio over the past eight quarters shows fluctuations in the company's liquidity position. The cash ratio ranged from 0.08 to 0.19 during this period.
In Q1 2023 and Q2 2023, the cash ratio was relatively higher at 0.19 and 0.18 respectively, indicating a healthier liquidity position during those quarters. This suggests that Targa Resources Corp had sufficient cash and cash equivalents to cover its short-term liabilities more comfortably during these periods.
However, in Q3 2023 and Q4 2023, the cash ratio remained stable at 0.13, which is lower compared to the previous two quarters. This indicates a slight weakening in the company's ability to cover its short-term obligations with its available cash and cash equivalents.
Overall, although Targa Resources Corp's cash ratio fluctuated over the past eight quarters, it appears to have maintained a moderate level of liquidity. It would be important for the company to manage its cash position effectively to ensure it can meet its short-term obligations consistently.
Peer comparison
Dec 31, 2023