Targa Resources Inc (TRGP)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 157,300 | 141,700 | 219,000 | 158,500 | 242,800 |
| Short-term investments | US$ in thousands | — | 111,900 | 179,900 | 43,100 | 85,500 |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 3,172,600 | 2,760,900 | 3,066,700 | 2,298,500 | 1,779,400 |
| Quick ratio | 0.05 | 0.09 | 0.13 | 0.09 | 0.18 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($157,300K
+ $—K
+ $—K)
÷ $3,172,600K
= 0.05
The quick ratio of Targa Resources Inc has exhibited a declining trend over the years, indicating a potential liquidity concern. As of December 31, 2020, the quick ratio was 0.18, falling to 0.09 by December 31, 2021. Although there was a slight improvement to 0.13 by December 31, 2022, it dropped back to 0.09 by December 31, 2023. The most recent data as of December 31, 2024, shows a further decrease to 0.05.
A quick ratio below 1 suggests that the company may have difficulty meeting its short-term obligations using its most liquid assets. This downward trend may raise concerns about the company's ability to cover its immediate liabilities without relying on selling inventory or obtaining additional financing. Further analysis of the company's cash flow management and working capital effectiveness may be warranted to address the declining quick ratio.
Peer comparison
Dec 31, 2024