Targa Resources Inc (TRGP)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,626,200 | 2,542,300 | 2,467,200 | 2,270,000 | 1,729,100 | 1,086,100 | 1,022,600 | 816,500 | 864,800 | 1,221,600 | 1,150,600 | 1,117,900 | -1,303,700 | -1,592,600 | -1,846,500 | -1,945,900 | 192,900 | 135,700 | 170,800 | 212,500 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | 7,279,700 | 6,639,000 | 7,118,500 |
| Total stockholders’ equity | US$ in thousands | 2,739,700 | 2,506,100 | 2,675,200 | 2,550,700 | 2,665,700 | 2,384,500 | 2,069,900 | 1,697,000 | 2,011,800 | 2,185,100 | 2,186,200 | 2,296,700 | 2,653,900 | 2,835,000 | 2,917,600 | 3,026,300 | 4,920,800 | 5,318,400 | 5,542,300 | 5,756,300 |
| Return on total capital | 95.86% | 101.44% | 92.22% | 89.00% | 64.86% | 45.55% | 49.40% | 48.11% | 42.99% | 55.91% | 52.63% | 48.67% | -49.12% | -56.18% | -63.29% | -64.30% | 3.92% | 1.08% | 1.40% | 1.65% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,626,200K ÷ ($—K + $2,739,700K)
= 95.86%
Targa Resources Corp's return on total capital has shown a positive trend over the past eight quarters. The return on total capital has consistently increased from 12.24% in Q4 2022 to 16.80% in Q4 2023, indicating efficient utilization of both debt and equity capital to generate profits. This improvement suggests the company's ability to generate higher returns relative to the total capital employed in its operations. Overall, the upward trend in return on total capital reflects positively on Targa Resources Corp's operational efficiency and financial performance during the period under review.
Peer comparison
Dec 31, 2023