Targa Resources Inc (TRGP)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $2,739,700K
= 0.00
The debt-to-equity ratio of Targa Resources Corp has shown an upward trend over the past five years, indicating an increasing reliance on debt financing compared to equity. In 2023, the ratio stands at 4.73, a significant increase from 4.33 in 2022 and a substantial jump from 1.50 in 2019. This suggests that the company has been taking on more debt relative to its equity position in recent years. While a higher debt-to-equity ratio can potentially magnify returns for shareholders, it also increases financial risk as the company has a higher debt burden to service. It is important for investors and stakeholders to monitor this ratio closely to assess the company's leverage and overall financial health.
Peer comparison
Dec 31, 2023