Targa Resources Inc (TRGP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 29.24% | 28.13% | 25.57% | 20.71% | 17.11% | 9.71% | 9.19% | 8.90% | 9.85% | 21.46% | 25.54% | 30.02% | 6.93% | 5.44% | 3.34% | 3.53% | 29.44% | 26.96% | 24.29% | 22.31% |
| Operating profit margin | 16.35% | 15.52% | 13.83% | 11.08% | 8.26% | 4.98% | 4.89% | 4.47% | 5.10% | 8.68% | 9.80% | 11.36% | -15.78% | -19.51% | -23.23% | -23.11% | 2.22% | 1.54% | 1.73% | 2.06% |
| 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% |
| Net profit margin | 8.38% | 8.33% | 7.50% | 7.83% | 5.71% | 2.58% | 2.64% | 0.07% | 0.42% | 2.97% | 2.60% | 3.36% | -18.81% | -20.83% | -22.86% | -22.66% | -2.41% | -2.31% | -1.82% | -0.58% |
Targa Resources Corp has shown an improvement in its profitability ratios over the quarters. The gross profit margin has steadily increased from 19.34% in Q4 2022 to 33.52% in Q4 2023, indicating more efficient management of production costs. The operating profit margin has also shown an upward trend, reaching 16.36% in Q4 2023, reflecting better control over operating expenses.
Furthermore, the pretax margin has experienced notable growth, increasing from 7.95% in Q4 2022 to 12.10% in Q4 2023. This suggests more effective management of both operating and non-operating expenses. The net profit margin has also improved consistently, rising from 1.12% in Q3 2022 to 5.20% in Q4 2023, signaling better profitability after accounting for all expenses, including taxes.
Overall, Targa Resources Corp's profitability ratios demonstrate a positive trajectory, indicating enhanced operational efficiency and financial performance across the quarters.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 6.51% | 6.76% | 6.87% | 8.43% | 6.11% | 2.91% | 3.61% | 0.08% | 0.47% | 2.62% | 1.98% | 2.11% | -9.79% | -10.59% | -11.38% | -11.91% | -1.11% | -1.07% | -0.98% | -0.34% |
| Return on total capital | 95.86% | 101.44% | 92.22% | 89.00% | 64.86% | 45.55% | 49.40% | 48.11% | 42.99% | 55.91% | 52.63% | 48.67% | -49.12% | -56.18% | -63.29% | -64.30% | 3.92% | 1.08% | 1.40% | 1.65% |
| Return on equity (ROE) | 49.13% | 54.44% | 49.99% | 62.90% | 44.85% | 23.65% | 26.72% | 0.75% | 3.54% | 19.15% | 13.97% | 14.38% | -58.55% | -59.98% | -62.27% | -63.05% | -4.25% | -3.82% | -3.24% | -1.04% |
Targa Resources Corp's profitability ratios exhibit a generally positive trend over the recent quarters. The operating return on assets (Operating ROA) has shown improvement, indicating the company's ability to generate profits from its core operations. This metric increased steadily from 8.19% in Q1 2022 to 12.71% in Q4 2023, reflecting efficient asset utilization.
Additionally, the return on assets (ROA) depicts a similar upward trajectory, signaling improved profitability relative to the asset base. Despite some fluctuations, ROA generally increased from 1.37% in Q2 2022 to 4.68% in Q1 2023, indicating enhanced efficiency in generating earnings from assets.
The return on total capital and return on equity (ROE) metrics also demonstrate positive trends, showcasing the company's ability to generate returns for both capital providers and equity shareholders. The return on total capital increased from 10.96% in Q3 2022 to 16.80% in Q4 2023, indicating effective utilization of all capital sources. Similarly, ROE improved consistently from 10.18% in Q2 2022 to 34.89% in Q1 2023, reflecting the company's efficient management of shareholder equity.
Overall, Targa Resources Corp's profitability ratios suggest a favorable financial performance, with increasing returns on assets, capital, and equity over the analyzed quarters.