Targa Resources Inc (TRGP)

Pretax margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	1,938,000	1,873,700	1,661,500	1,692,200	1,942,400	1,888,000	1,846,400	2,137,200	1,663,200	999,600	998,300	385,600	437,000	879,400	793,500	785,400	-1,573,100	-1,850,600	-2,026,400	-2,134,700
Revenue (ttm)	US$ in thousands	16,473,200	16,299,700	16,344,500	16,129,600	16,052,600	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
Pretax margin		11.76%	11.50%	10.17%	10.49%	12.10%	11.53%	10.35%	10.43%	7.95%	4.58%	4.77%	2.11%	2.58%	6.25%	6.76%	7.98%	-19.04%	-22.68%	-25.49%	-25.35%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $1,938,000K ÷ $16,473,200K
= 11.76%

Targa Resources Inc's pre-tax margin experienced significant fluctuations over the reviewed periods. The trend indicates a negative pre-tax margin in the first half of 2020, with values ranging from -25.35% to -19.04%. However, the company's financial performance improved in 2021, as evidenced by positive pre-tax margins in subsequent quarters, reaching 7.98% by March 31, 2021.

The positive momentum continued into 2022, with pre-tax margins ranging from 2.11% to 7.95%. The company's profitability peaked in the second half of 2023, with pre-tax margins reaching double digits, fluctuating between 10.17% and 12.10%.

Overall, the trend suggests that Targa Resources Inc has made notable improvements in its financial performance, transitioning from negative pre-tax margins to sustained positive margins in recent quarters, which reflects efficiency gains and enhanced operational performance.