Targa Resources Inc (TRGP)
Operating return on assets (Operating ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 2,626,200 | 1,729,000 | 864,800 | -1,303,700 | 192,900 |
| Total assets | US$ in thousands | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 | 18,815,100 |
| Operating ROA | 12.70% | 8.84% | 5.69% | -8.21% | 1.03% |
December 31, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $2,626,200K ÷ $20,671,800K
= 12.70%
Targa Resources Corp's operating return on assets (ROA) has shown a positive trend over the past five years, indicating an improvement in the company's efficiency in generating operating income from its assets. The operating ROA has steadily increased from 2.70% in 2019 to 12.71% in 2023. This suggests that the company has become more effective in utilizing its assets to generate operating profits.
The increase in operating ROA can be attributed to various factors such as better operational efficiency, cost management, and possibly strategic investments that have positively impacted the company's operating income relative to its asset base. The consistent improvement in operating ROA reflects positively on Targa Resources Corp's ability to generate operating profits from its asset base, which is a key indicator of the company's operational performance and financial health.
Peer comparison
Dec 31, 2023