Targa Resources Inc (TRGP)
Pretax margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 1,709,100 | 1,327,300 | 86,000 | -1,802,000 | -297,100 |
| Revenue | US$ in thousands | 16,060,300 | 20,929,800 | 16,949,800 | 8,260,300 | 8,671,100 |
| Pretax margin | 10.64% | 6.34% | 0.51% | -21.82% | -3.43% |
December 31, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $1,709,100K ÷ $16,060,300K
= 10.64%
The pretax margin of Targa Resources Corp has shown significant fluctuations over the past five years. The company's pretax margin was negative in 2019 at -0.54%, indicating that expenses exceeded revenues before accounting for taxes. However, there was a notable improvement in 2020 with a pretax margin of -19.04%, suggesting that the company was able to better control its expenses relative to its revenues compared to the previous year.
The trend continued to improve in the following years, with a substantial increase in the pretax margin to 2.58% in 2021 and a further improvement to 7.95% in 2022. The most recent data for 2023 indicates a pretax margin of 12.10%, reflecting a steady growth trend in the company's ability to generate profit before taxes relative to its total revenue.
Overall, the increasing trend in the pretax margin over the past five years demonstrates an enhanced operational efficiency and effectiveness in managing expenses, which has positively impacted the company's profitability. However, it is essential to monitor this ratio over time to ensure sustained financial performance and competitiveness in the industry.
Peer comparison
Dec 31, 2023