Targa Resources Inc (TRGP)

Liquidity ratios

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
Current ratio 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 0.89 0.88 0.73 0.58
Quick ratio 0.62 0.55 0.50 0.50 0.59 0.56 0.59 0.59 0.65 0.53 0.85 1.10 1.02 1.16 0.56 0.68 0.63 0.64 0.52 0.43
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

The liquidity ratios of Targa Resources Corp have displayed fluctuations over the past eight quarters. The current ratio, which measures the company's ability to cover short-term obligations with its current assets, has ranged from 0.65 to 0.80. This indicates that the company may have had some difficulty meeting its short-term obligations in certain quarters.

The quick ratio, a more stringent measure of liquidity that excludes inventories from current assets, has ranged from 0.60 to 0.66. While this ratio is generally lower than the current ratio, it still indicates that Targa Resources Corp may have struggled to cover its short-term liabilities with its most liquid assets.

Lastly, the cash ratio, which indicates the proportion of current liabilities that can be covered by cash and cash equivalents, has ranged from 0.08 to 0.19. This ratio suggests that the company may have had limited cash reserves to meet its short-term obligations, particularly in quarters where the ratio was lower.

Overall, Targa Resources Corp's liquidity ratios show variability and potential liquidity challenges, highlighting the importance of closely monitoring the company's ability to meet its short-term financial obligations.

Additional liquidity measure

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 conversion cycle days -5.22 -4.75 -3.45 -6.46 2.36 -8.50 -17.61 -24.26 -17.65 -10.61 -12.42 -10.51 7.16 10.43 6.68 -2.72 -11.33 -12.62 -14.49 -17.50

The cash conversion cycle of Targa Resources Corp has shown fluctuations over the past eight quarters. The company's cash conversion cycle measures how long it takes for the company to convert its investments in inventory and other resources into cash flows from sales.

In Q4 2023, the cash conversion cycle was -7.71 days, indicating that the company was able to quickly convert its investments into cash. This trend continued in Q3 2023 and Q2 2023 with values of -6.70 days and -4.49 days, respectively, showing efficient cash conversion processes during these periods.

However, Q1 2023 saw a negative cash conversion cycle of -7.33 days, indicating that the company was taking longer to convert its investments compared to the previous quarters. This could be attributed to various factors such as changes in sales patterns or inventory management practices.

Looking back at Q4 2022 and Q3 2022, the cash conversion cycle was positive at 1.75 days and -1.20 days, respectively. These positive values suggest that the company took longer to convert its investments into cash during these quarters.

Furthermore, Q2 2022 and Q1 2022 had significant negative cash conversion cycles of -7.42 days and -9.95 days, respectively, showing that the company was efficiently managing its cash conversion processes during these periods.

Overall, the analysis of Targa Resources Corp's cash conversion cycle indicates varied performance in converting investments into cash flows over the past eight quarters, reflecting changes in operational efficiency and management of working capital.