Targa Resources Inc (TRGP)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	22,734,100	20,671,800	19,560,000	15,208,200	15,875,700
Total stockholders’ equity	US$ in thousands	2,592,400	2,739,700	2,665,700	2,761,500	2,955,300
Financial leverage ratio		8.77	7.55	7.34	5.51	5.37

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,734,100K ÷ $2,592,400K
= 8.77

The financial leverage ratio for Targa Resources Inc has been increasing steadily over the years, from 5.37 in 2020 to 8.77 in 2024. This indicates that the company is relying more on debt to finance its operations and growth. Higher leverage ratios suggest higher financial risk, as the company's debt levels are increasing relative to its equity. It is important for investors and stakeholders to closely monitor this trend, as a high leverage ratio can make the company more vulnerable to economic downturns or interest rate fluctuations. Management should consider strategies to balance the use of debt with equity financing to maintain a healthy financial structure.