Targa Resources Inc (TRGP)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,705,200 | 2,630,300 | 1,729,000 | 824,800 | -1,181,800 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,592,400 | 2,739,700 | 2,665,700 | 2,761,500 | 2,955,300 |
| Return on total capital | 104.35% | 96.01% | 64.86% | 29.87% | -39.99% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,705,200K ÷ ($—K + $2,592,400K)
= 104.35%
The return on total capital for Targa Resources Inc has shown a significant improvement over the years, from a negative 39.99% as of December 31, 2020, to positive figures of 29.87% in 2021, 64.86% in 2022, 96.01% in 2023, and reaching 104.35% by December 31, 2024. This indicates that the company has been able to generate higher returns relative to the total capital invested in its operations. The increasing trend suggests that Targa Resources Inc has been utilizing its capital more efficiently to generate profits for its stakeholders. It is important for investors and stakeholders to further evaluate the sustainability and consistency of this positive trend in return on total capital to assess the overall financial health and performance of the company.
Peer comparison
Dec 31, 2024