Targa Resources Inc (TRGP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,592,400	2,573,900	2,467,500	2,703,900	2,739,700	2,506,100	2,675,200	2,550,700	2,665,700	2,384,500	2,069,900	2,446,700	2,761,500	2,934,800	2,935,900	3,046,400	2,955,300	3,141,500	3,214,600	3,314,100
ROE		50.61%	48.98%	44.31%	41.57%	49.13%	54.44%	53.21%	66.28%	51.10%	30.64%	30.61%	3.82%	2.58%	14.26%	10.41%	10.84%	-52.58%	-54.12%	-56.52%	-57.58%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,312,100K ÷ $2,592,400K
= 50.61%

The return on equity (ROE) of Targa Resources Inc has shown a significant improvement over the past few quarters. The company experienced negative ROE figures in the first half of 2020, indicating inefficient utilization of shareholders' equity during that period. However, starting from March 31, 2021, the ROE turned positive and has been on an upward trend since then.

The ROE improved consistently throughout 2021 and into 2022, with double-digit percentages being recorded. By the end of 2022, the ROE crossed the 50% mark, indicating a strong profitability and efficient use of equity by the company.

Although there was a slight dip in the ROE in March 2023, it quickly recovered and continued to maintain at relatively high levels throughout the rest of 2023 and 2024. The consistent positive trend in ROE demonstrates that Targa Resources Inc has been generating higher profits relative to the shareholders' equity invested in the company, reflecting strong financial performance and value creation for shareholders.

Overall, the positive trajectory of ROE for Targa Resources Inc indicates improved profitability, effective management of assets, and enhanced shareholder value over the analyzed period.