Targa Resources Inc (TRGP)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 28.62% | 16.58% | 13.84% | 3.59% | 29.44% |
| Operating profit margin | 16.35% | 8.26% | 5.10% | -15.78% | 2.22% |
| Pretax margin | 10.64% | 6.34% | 0.51% | -21.82% | -3.43% |
| Net profit margin | 8.38% | 5.71% | 0.42% | -18.81% | -2.41% |
Targa Resources Corp has displayed fluctuating profitability ratios over the past five years. The gross profit margin has varied significantly, ranging from a high of 38.20% in 2020 to a low of 19.00% in 2021. In 2023, the gross profit margin improved to 33.52%, indicating a better ability to generate profits from its core operations.
The operating profit margin has also shown volatility, with a notable increase in 2023 to 16.36% from 8.26% in 2022. This suggests that Targa Resources Corp has been more effective in controlling its operating expenses to generate operating profits.
The pretax margin has fluctuated widely, reaching a negative level of -19.04% in 2020 before recovering to 12.10% in 2023. This improvement indicates a better ability to generate profits before accounting for taxes and reflects potential operational efficiencies or cost management strategies.
The net profit margin, reflecting the company's bottom-line profitability, also experienced significant fluctuations, including negative margins in 2020 and 2019. The positive net profit margin of 5.20% in 2023 signifies that Targa Resources Corp has managed to translate its revenues into net income more efficiently compared to previous years.
In summary, Targa Resources Corp's profitability ratios have shown improvement in 2023 compared to the prior year, indicating better management of costs, operational efficiency, and overall profitability.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.70% | 8.84% | 5.69% | -8.21% | 1.03% |
| Return on assets (ROA) | 6.51% | 6.11% | 0.47% | -9.79% | -1.11% |
| Return on total capital | 95.86% | 64.86% | 42.99% | -49.12% | 3.92% |
| Return on equity (ROE) | 49.13% | 44.85% | 3.54% | -58.55% | -4.25% |
Targa Resources Corp's profitability ratios have shown varying trends over the past five years.
1. Operating return on assets (Operating ROA) has generally been increasing, from 2.70% in 2019 to 12.71% in 2023. This indicates the company's ability to generate operating income relative to its total assets has improved consistently.
2. Return on assets (ROA) shows a mixed trend, with negative values in 2020 and 2021, but positive values in 2019, 2022, and 2023. The negative values in 2020 and 2021 suggest that the company was not efficient in generating profits from its total assets during those years.
3. Return on total capital has shown an increasing trend over the years, reaching 16.80% in 2023. This ratio reflects the company's ability to generate returns on both debt and equity capital employed.
4. Return on equity (ROE) has been volatile, with significant fluctuations including negative values in 2021 and 2020. The positive ROE values in 2019, 2022, and 2023, with 2022 showing the highest value at 33.64%, indicate the company's ability to generate profit from shareholders' equity.
Overall, Targa Resources Corp's profitability ratios reflect improvements in operational efficiency and returns generated on capital employed, although there have been challenges in certain years, notably in 2020 and 2021. The company's focus on optimizing asset utilization and enhancing profitability seems to be yielding positive results in recent years.