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.