Targa Resources Inc (TRGP)
Return on assets (ROA)
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 1,345,900 | 1,195,500 | 71,200 | -1,553,900 | -209,200 |
| Total assets | US$ in thousands | 20,671,800 | 19,560,000 | 15,208,200 | 15,875,700 | 18,815,100 |
| ROA | 6.51% | 6.11% | 0.47% | -9.79% | -1.11% |
December 31, 2023 calculation
ROA = Net income ÷ Total assets
= $1,345,900K ÷ $20,671,800K
= 6.51%
Targa Resources Corp's return on assets (ROA) has shown fluctuations over the past five years. In 2023, the ROA stood at 4.04%, a decrease from the previous year's 4.58%. Despite this slight decline, the company still managed to generate a positive return on its assets, indicating efficient asset utilization to generate earnings.
In 2021, Targa Resources Corp experienced a negative ROA of -0.11%, which might suggest challenges in effectively utilizing its assets to generate profits during that period. This was a significant improvement compared to 2020 and 2019 when the ROA was notably lower at -10.61% and -1.78%, respectively.
Overall, Targa Resources Corp's ROA has shown improvement since 2020, indicating that the company has been more effective in generating profits relative to its asset base. However, monitoring this ratio over time will be essential to assess the company's ongoing operational efficiency and asset management.
Peer comparison
Dec 31, 2023