Targa Resources Inc (TRGP)
Operating return on assets (Operating ROA)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 2,626,200 | 2,542,300 | 2,467,200 | 2,270,000 | 1,729,100 | 1,086,100 | 1,022,600 | 816,500 | 864,800 | 1,221,600 | 1,150,600 | 1,117,900 | -1,303,700 | -1,592,600 | -1,846,500 | -1,945,900 | 192,900 | 135,700 | 170,800 | 212,500 |
| Total assets | US$ in thousands | 20,671,800 | 20,189,600 | 19,461,800 | 19,025,500 | 19,560,000 | 19,389,900 | 15,334,300 | 15,295,400 | 15,208,200 | 15,972,700 | 15,411,800 | 15,648,400 | 15,875,700 | 16,052,100 | 15,965,400 | 16,026,800 | 18,815,100 | 18,918,500 | 18,318,200 | 17,569,200 |
| Operating ROA | 12.70% | 12.59% | 12.68% | 11.93% | 8.84% | 5.60% | 6.67% | 5.34% | 5.69% | 7.65% | 7.47% | 7.14% | -8.21% | -9.92% | -11.57% | -12.14% | 1.03% | 0.72% | 0.93% | 1.21% |
December 31, 2023 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $2,626,200K ÷ $20,671,800K
= 12.70%
Targa Resources Corp's operating return on assets (ROA) has shown a consistent upward trend over the past eight quarters. The company's operating ROA has steadily increased from 8.19% in Q1 2022 to 12.71% in Q4 2023, indicating improved profitability in utilizing its assets to generate operating income. This demonstrates the company's ability to effectively manage its resources and operations to generate higher levels of operating income relative to its total assets.
The gradual increase in operating ROA suggests that Targa Resources Corp has been able to enhance operational efficiency and profitability over the period under review. The company's ability to maintain a double-digit operating ROA for several consecutive quarters indicates a strong performance in utilizing its assets to generate earnings from core business operations. Investors and stakeholders may view this consistent improvement positively, as it reflects the company's ability to generate profit from its asset base.
Peer comparison
Dec 31, 2023