Targa Resources Inc (TRGP)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	4,255,500	4,054,300	2,951,700	2,349,700	2,290,100
Revenue	US$ in thousands	16,381,500	16,060,300	20,929,800	16,949,800	8,260,300
Gross profit margin		25.98%	25.24%	14.10%	13.86%	27.72%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $4,255,500K ÷ $16,381,500K
= 25.98%

Based on the data provided, Targa Resources Inc's gross profit margin has displayed fluctuations over the past five years. The gross profit margin decreased significantly from 27.72% as of December 31, 2020, to 13.86% as of December 31, 2021, reflecting a substantial decline in profitability. However, there was a slight improvement in the following year, with the margin increasing to 14.10% as of December 31, 2022.

Subsequently, there was a notable recovery in the gross profit margin, reaching 25.24% as of December 31, 2023, indicating an uptrend in profitability. This positive trend continued into the most recent year, with the gross profit margin further improving to 25.98% as of December 31, 2024.

Overall, despite the initial decline, Targa Resources Inc has managed to enhance its gross profit margin over the past two years, suggesting improvements in cost management and revenue generation strategies. The company's ability to sustain and increase its gross profit margin demonstrates its effectiveness in efficiently managing production costs and maximizing revenues.