Targa Resources Inc (TRGP)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,695,400 | 2,626,200 | 1,729,000 | 1,289,500 | 3,809,600 |
| Total assets | US$ in thousands | 22,734,100 | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 |
| Operating ROA | 11.86% | 12.70% | 8.84% | 8.48% | 24.00% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $2,695,400K ÷ $22,734,100K
= 11.86%
Operating return on assets (Operating ROA) is a key financial metric that indicates a company's profitability from its core operations relative to its total assets. Analyzing Targa Resources Inc's Operating ROA over the past five years, we observe the following trends:
- In December 2020, Targa Resources Inc's Operating ROA was 24.00%, indicating that for every dollar of assets, the company generated a return of 24 cents from its core operations.
- Subsequently, there was a notable decrease in Operating ROA to 8.48% by December 2021, suggesting a decline in profitability compared to the previous year.
- However, there was a slight improvement in Operating ROA to 8.84% by December 2022, indicating a potential recovery in operational efficiency.
- By December 2023, Targa Resources Inc's Operating ROA further increased to 12.70%, signaling an enhanced profitability from its operational activities.
- In the most recent year, December 2024, the Operating ROA slightly decreased to 11.86%, still maintaining a relatively positive level of return on assets.
Overall, fluctuations in Targa Resources Inc's Operating ROA over the five-year period reflect varying levels of operational efficiency and profitability. It is essential for the company to continue monitoring and improving its Operating ROA to ensure sustainable profitability and effective asset utilization.
Peer comparison
Dec 31, 2024