Targa Resources Inc (TRGP)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,312,100	1,260,700	1,093,300	1,124,100	1,345,900	1,364,300	1,423,600	1,690,700	1,362,300	730,700	633,600	93,400	71,200	418,400	305,500	330,300	-1,553,900	-1,700,300	-1,816,900	-1,908,100
Total assets	US$ in thousands	22,734,100	21,903,800	21,264,200	20,846,100	22,026,900	20,189,600	19,461,800	19,025,500	19,560,000	19,389,900	15,334,300	15,295,400	15,208,200	15,972,700	15,411,800	15,648,400	15,875,700	16,052,100	15,965,400	16,026,800
ROA		5.77%	5.76%	5.14%	5.39%	6.11%	6.76%	7.31%	8.89%	6.96%	3.77%	4.13%	0.61%	0.47%	2.62%	1.98%	2.11%	-9.79%	-10.59%	-11.38%	-11.91%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,312,100K ÷ $22,734,100K
= 5.77%

Targa Resources Inc's return on assets (ROA) has shown fluctuations over the past few years. The ROA was negative in the first half of 2020, indicating that the company's assets were not generating sufficient profits during that period. However, the ROA started to turn positive in the first quarter of 2021, reaching a peak in the first quarter of 2023. This positive trend indicates an improvement in the company's ability to utilize its assets to generate profits.

Despite the positive trend, there have been fluctuations in the ROA since the first quarter of 2023, with minor decreases and increases. Overall, Targa Resources Inc's ROA has been relatively stable above 5% from the first quarter of 2024 onwards, which indicates that the company is efficiently using its assets to generate earnings.

It is essential for stakeholders to monitor Targa Resources Inc's ROA consistently to assess the company's operational efficiency and profitability in leveraging its assets.