Targa Resources Inc (TRGP)
Current ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 2,296,300 | 2,194,600 | 2,356,600 | 1,769,800 | 1,460,300 |
| Total current liabilities | US$ in thousands | 3,172,600 | 2,760,900 | 3,066,700 | 2,298,500 | 1,779,400 |
| Current ratio | 0.72 | 0.79 | 0.77 | 0.77 | 0.82 |
December 31, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $2,296,300K ÷ $3,172,600K
= 0.72
The current ratio of Targa Resources Inc has been showing a downward trend over the past few years, declining from 0.82 in December 2020 to 0.72 in December 2024. This indicates that the company may be facing some liquidity challenges as its current assets are decreasing relative to its current liabilities.
A current ratio below 1 typically indicates that a company may have difficulty meeting its short-term obligations using its current assets alone. Therefore, Targa Resources Inc may have to rely on other sources of liquidity or financing to cover its short-term liabilities.
It is important for investors and stakeholders to monitor the trend of the current ratio to assess the company's ability to manage its short-term financial obligations effectively. Further analysis of the company's cash flow and working capital management practices may be necessary to fully understand the factors contributing to the declining current ratio.
Peer comparison
Dec 31, 2024