Targa Resources Inc (TRGP)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,739,700 | 2,665,700 | 2,011,800 | 2,653,900 | 4,920,800 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,739,700K)
= 0.00
The debt-to-capital ratio of Targa Resources Corp has shown an increasing trend over the past five years. This ratio was 0.60 at the end of 2019, indicating that the company's debt made up 60% of its total capital structure at that time. Subsequently, the ratio increased to 0.72 at the end of 2020, 0.70 at the end of 2021, 0.81 at the end of 2022, and further to 0.83 at the end of 2023.
The increasing trend in the debt-to-capital ratio suggests that Targa Resources Corp has been relying more on debt to finance its operations and growth compared to its equity. A higher debt-to-capital ratio indicates a greater proportion of debt in the company's capital structure, which may lead to higher financial risk due to increased interest payments and potential difficulties in meeting debt obligations.
Investors and creditors closely monitor the debt-to-capital ratio as it provides insights into the company's leverage and financial stability. Targa Resources Corp's increasing debt-to-capital ratio trend should be further analyzed in conjunction with other financial metrics and factors to assess the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023