Targa Resources Inc (TRGP)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 2,592,400 | 2,739,700 | 2,665,700 | 2,761,500 | 2,955,300 |
| ROE | 49.34% | 49.13% | 33.64% | 15.29% | -44.83% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $1,279,100K ÷ $2,592,400K
= 49.34%
Based on the data provided, Targa Resources Inc's return on equity (ROE) has experienced significant fluctuations over the years. In December 2020, the ROE was negative at -44.83%, indicating that the company's net income was insufficient to cover shareholders' equity.
However, there has been a notable improvement in Targa Resources Inc's ROE performance in subsequent years. By December 2021, the ROE had increased to 15.29%, indicating a positive return for shareholders. This positive trend continued in December 2022 and December 2023, with ROE reaching 33.64% and 49.13% respectively, reflecting the company's ability to generate higher profits relative to its equity base.
In December 2024, Targa Resources Inc maintained a strong ROE of 49.34%, suggesting that the company continued to effectively utilize its shareholders' equity to generate profits.
Overall, the increasing trend in Targa Resources Inc's ROE from negative territory in 2020 to robust positive levels in subsequent years signifies an improvement in the company's profitability and efficiency in utilizing shareholder investments.
Peer comparison
Dec 31, 2024