Targa Resources Inc (TRGP)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,709,000	1,634,700	1,565,900	1,823,700	1,327,300	677,200	656,300	35,600	86,100	480,500	397,500	392,500	-1,802,000	-2,064,800	-2,217,100	-2,288,400	-297,100	-245,200	-221,700	-66,300
Revenue (ttm)	US$ in thousands	16,060,300	16,375,600	17,839,100	20,491,200	20,929,800	21,816,600	20,916,200	18,276,300	16,949,900	14,081,100	11,736,500	9,844,100	8,260,300	8,161,400	7,948,800	8,420,600	8,671,100	8,794,800	9,878,700	10,327,800
Pretax margin		10.64%	9.98%	8.78%	8.90%	6.34%	3.10%	3.14%	0.19%	0.51%	3.41%	3.39%	3.99%	-21.82%	-25.30%	-27.89%	-27.18%	-3.43%	-2.79%	-2.24%	-0.64%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,709,000K ÷ $16,060,300K
= 10.64%

Targa Resources Corp's pretax margin has shown a positive trend over the past eight quarters. The pretax margin has steadily improved from 2.11% in Q1 2022 to 12.10% in Q4 2023. This indicates that the company has been successful in controlling its operating expenses and generating higher earnings before taxes relative to its revenue. The consistent increase in pretax margin reflects efficient cost management and potentially improving operational performance. Overall, Targa Resources Corp's pretax margin demonstrates a positive financial trajectory and management effectiveness.

Peer comparison

Dec 31, 2023

Company name

Symbol

Pretax margin

Targa Resources Inc

TRGP

10.64%

Antero Midstream Partners LP

Williams Companies Inc

WMB

38.36%