Targa Resources Inc (TRGP)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 141,700 | 219,000 | 158,500 | 242,800 | 331,100 |
| Short-term investments | US$ in thousands | 111,900 | 179,900 | 43,100 | 85,500 | 103,300 |
| Receivables | US$ in thousands | 1,471,000 | 1,408,400 | 1,331,900 | 862,800 | 855,000 |
| Total current liabilities | US$ in thousands | 2,760,900 | 3,066,700 | 2,298,500 | 1,779,400 | 1,872,600 |
| Quick ratio | 0.62 | 0.59 | 0.67 | 0.67 | 0.69 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($141,700K
+ $111,900K
+ $1,471,000K)
÷ $2,760,900K
= 0.62
The quick ratio of Targa Resources Corp has shown a declining trend over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.
In 2023, the quick ratio stands at 0.66, indicating that the company may face challenges in meeting its short-term liabilities with its quick assets. This could be a cause for concern as it suggests a potential liquidity risk.
Comparing this to the quick ratios of the previous years, which were 0.64 in 2022, 0.70 in 2021, 0.72 in 2020, and 0.73 in 2019, there is a consistent downward trend in the company's ability to cover its short-term obligations with its quick assets.
This trend may warrant further investigation into the company's liquidity management and operational efficiency to ensure that it can meet its financial obligations in the short term without relying heavily on liquidating its inventory or receivables.
Peer comparison
Dec 31, 2023