Targa Resources Inc (TRGP)

Current 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
Total current assets US$ in thousands 2,296,300 2,028,200 1,866,600 1,973,000 2,194,600 2,139,300 1,728,800 1,638,800 2,356,600 2,497,300 2,164,100 1,900,500 1,769,800 1,993,300 1,317,900 1,408,800 1,460,300 1,444,400 1,225,000 1,214,300
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
Current ratio 0.72 0.77 0.65 0.70 0.79 0.80 0.74 0.66 0.77 0.74 0.69 0.65 0.77 0.69 0.63 0.80 0.82 1.05 0.93 1.02

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 exhibited fluctuations over the analyzed period. The ratio decreased from 1.02 as of March 31, 2020, to 0.93 as of June 30, 2020, indicating a potential strain on the company's short-term liquidity. However, there was a recovery as the ratio increased to 1.05 by September 30, 2020.

Subsequently, the current ratio experienced a declining trend, reaching a low point of 0.63 as of June 30, 2021, signifying a potential liquidity issue. Despite some fluctuations, the ratio generally stayed below 1, suggesting that the company may have had difficulty meeting its short-term obligations with its current assets during this period.

There was some improvement in the current ratio in the latter half of 2022 and into 2024, with the ratio hovering around 0.74 to 0.80. However, it is important to note that the ideal current ratio is typically considered to be above 1, indicating that the company has more current assets than current liabilities to cover its short-term obligations.

Overall, the current ratio trend for Targa Resources Inc during the analyzed period highlights fluctuations in the company's ability to meet its short-term financial obligations with its current assets. Continued monitoring of the current ratio is advisable to assess the company's liquidity position accurately.