Targa Resources Inc (TRGP)
Quick ratio
| 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 | US$ in thousands | 141,700 | 139,500 | 169,400 | 211,800 | 219,000 | 192,900 | 154,000 | 135,900 | 158,500 | 228,600 | 209,000 | 248,500 | 242,800 | 275,000 | 196,200 | 375,200 | 331,100 | 326,300 | 226,500 | 124,900 |
| Short-term investments | US$ in thousands | 111,900 | 84,200 | — | — | 179,900 | 185,800 | 80,800 | — | — | — | 685,000 | 695,000 | 714,000 | 718,000 | — | — | — | — | — | — |
| Receivables | US$ in thousands | 1,471,000 | 1,241,100 | 988,100 | 1,023,400 | 1,408,400 | 1,534,900 | 1,612,600 | 1,567,200 | 1,331,900 | 1,291,000 | 901,800 | 997,100 | 862,800 | 609,800 | 547,200 | 438,100 | 855,000 | 744,000 | 637,200 | 752,800 |
| Total current liabilities | US$ in thousands | 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 | 1,872,600 | 1,669,300 | 1,658,000 | 2,041,600 |
| 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 |
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 been relatively stable over the past eight quarters, ranging from 0.60 to 0.66. The quick ratio measures the company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.
A quick ratio below 1.0 indicates that the company may have difficulty meeting its short-term obligations using only its liquid assets. Targa's quick ratio has consistently been below 1.0, suggesting that the company may struggle to cover its short-term liabilities with its readily available assets. However, the slight improvement seen in Q4 2023 compared to the previous quarters may indicate a positive trend towards better liquidity management.
It is important for investors and stakeholders to monitor the company's quick ratio over time to assess its ability to meet its short-term financial obligations. Further analysis of the company's asset composition and management of working capital may provide deeper insights into Targa Resources Corp's financial health and liquidity position.
Peer comparison
Dec 31, 2023