Targa Resources Inc (TRGP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 2,705,200 | 2,630,300 | 1,729,000 | 824,800 | -1,181,800 |
| Interest expense | US$ in thousands | 767,200 | 687,800 | 446,100 | 387,900 | 391,300 |
| Interest coverage | 3.53 | 3.82 | 3.88 | 2.13 | -3.02 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,705,200K ÷ $767,200K
= 3.53
The interest coverage ratio for Targa Resources Inc has shown some fluctuation over the years. In 2020, the ratio was negative, indicating that the company's operating income was insufficient to cover its interest expenses. However, there has been a significant improvement since then. By the end of 2021, the interest coverage ratio had increased to 2.13, suggesting a better ability to meet interest obligations. The ratio continued to improve in the following years, reaching 3.88 by the end of 2022, 3.82 by the end of 2023, and 3.53 by the end of 2024. This trend indicates that the company's earnings are more comfortably covering its interest payments, which could be a positive sign for its financial stability and ability to service its debt obligations.
Peer comparison
Dec 31, 2024