Targa Resources Inc (TRGP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,699,800 | 2,633,000 | 2,407,100 | 2,429,000 | 2,626,200 | 2,542,200 | 2,467,100 | 2,269,900 | 1,729,000 | 1,023,500 | 960,100 | 753,900 | 802,200 | 3,674,700 | 3,609,900 | 3,577,300 | 3,598,500 | 1,078,200 | 789,000 | 689,600 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 104.14% | 102.30% | 97.55% | 89.83% | 95.86% | 101.44% | 92.22% | 88.99% | 64.86% | 42.92% | 46.38% | 30.81% | 29.05% | 125.21% | 122.96% | 117.43% | 121.76% | 34.32% | 24.54% | 20.81% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,699,800K ÷ ($—K + $2,592,400K)
= 104.14%
The return on total capital of Targa Resources Inc has shown fluctuating trends over the period from March 31, 2020, to December 31, 2024. The metric started at 20.81% in March 2020 and gradually increased to reach 122.96% by June 30, 2021, indicating a significant improvement in the company's ability to generate returns relative to its total capital during this period.
However, there was a notable drop in return on total capital in the following quarters. By December 31, 2021, the metric had decreased to 29.05%, showing a reversal in the positive trend seen earlier. This trend continued into the first half of 2022, with values ranging between 30.81% and 46.38%, indicating some fluctuations in the company's capital efficiency.
From September 30, 2022, onwards, there was a more stable increase in return on total capital, reaching 104.14% by December 31, 2024. This indicates that Targa Resources Inc was able to enhance its capital utilization efficiency and generate higher returns relative to its total capital in the latter half of the period under consideration.
Overall, the return on total capital for Targa Resources Inc exhibited varying levels of performance over the analyzed period, with fluctuations reflecting changes in the company's ability to generate returns in relation to the total capital employed.
Peer comparison
Dec 31, 2024