Targa Resources Inc (TRGP)

Financial leverage ratio

		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
Total assets	US$ in thousands	22,734,100	21,903,800	21,264,200	20,846,100	22,026,900	20,189,600	19,461,800	19,025,500	19,560,000	19,389,900	15,334,300	15,295,400	15,208,200	15,972,700	15,411,800	15,648,400	15,875,700	16,052,100	15,965,400	16,026,800
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
Financial leverage ratio		8.77	8.51	8.62	7.71	8.04	8.06	7.27	7.46	7.34	8.13	7.41	6.25	5.51	5.44	5.25	5.14	5.37	5.11	4.97	4.84

December 31, 2024 calculation

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

The financial leverage ratio of Targa Resources Inc has shown an increasing trend over the past few years, indicating a higher degree of financial leverage. The ratio has progressively risen from 4.84 as of March 31, 2020, to 8.77 as of December 31, 2024. This implies that the company has been relying more on debt financing compared to equity to fund its operations and growth.

The significant increase in the financial leverage ratio from 2022 to 2024 suggests that Targa Resources Inc may have taken on additional debt during this period, possibly to finance expansion projects or acquisitions. This higher level of leverage can magnify both the potential returns and risks for the company and its investors.

It is important to note that a high financial leverage ratio can make the company more vulnerable to economic downturns or fluctuations in interest rates, as it would need to meet higher debt obligations. Investors and stakeholders should closely monitor Targa Resources Inc's leverage ratio and assess the company's ability to manage its debt levels effectively to mitigate financial risks.