Targa Resources Inc (TRGP)
Return on assets (ROA)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,279,100 | 1,345,900 | 896,800 | 422,100 | -1,325,000 |
| Total assets | US$ in thousands | 22,734,100 | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 |
| ROA | 5.63% | 6.51% | 4.58% | 2.78% | -8.35% |
December 31, 2024 calculation
ROA = Net income ÷ Total assets
= $1,279,100K ÷ $22,734,100K
= 5.63%
Based on the provided data for Targa Resources Inc's return on assets (ROA) over the years, we observe the following trend:
- December 31, 2020: ROA was -8.35%, indicating that the company experienced a negative return on its assets, potentially pointing to operational inefficiencies or financial challenges during that period.
- December 31, 2021: ROA improved to 2.78%, which suggests the company was able to generate a positive return on its assets compared to the previous year.
- December 31, 2022: The ROA further increased to 4.58%, indicating a continued improvement in the company's ability to generate earnings from its assets.
- December 31, 2023: ROA rose to 6.51%, reflecting a significant improvement in the company's asset utilization and profitability.
- December 31, 2024: The ROA decreased slightly to 5.63%, but still remained at a relatively healthy level, indicating the company's continued ability to generate profits from its assets.
Overall, the upward trend in Targa Resources Inc's ROA from 2020 to 2024 suggests an improvement in the company's efficiency in generating earnings from its assets and better financial performance over the years. However, it is essential to continue monitoring this ratio to ensure sustained profitability and effective asset utilization.
Peer comparison
Dec 31, 2024