Targa Resources Inc (TRGP)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 2,626,200 | 2,542,300 | 2,467,200 | 2,270,000 | 1,729,100 | 1,086,100 | 1,022,600 | 816,500 | 864,800 | 1,221,600 | 1,150,600 | 1,117,900 | -1,303,700 | -1,592,600 | -1,846,500 | -1,945,900 | 192,900 | 135,700 | 170,800 | 212,500 |
| Interest expense (ttm) | US$ in thousands | 55,100 | 39,500 | 31,900 | 24,100 | 19,800 | 12,000 | 9,000 | 6,900 | 5,200 | 6,000 | 13,600 | 22,800 | 34,400 | 42,800 | 34,600 | 41,600 | 48,200 | 52,000 | 61,600 | 55,600 |
| Interest coverage | 47.66 | 64.36 | 77.34 | 94.19 | 87.33 | 90.51 | 113.62 | 118.33 | 166.31 | 203.60 | 84.60 | 49.03 | -37.90 | -37.21 | -53.37 | -46.78 | 4.00 | 2.61 | 2.77 | 3.82 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,626,200K ÷ $55,100K
= 47.66
Targa Resources Corp's interest coverage ratio has demonstrated consistency and stability over the past eight quarters, ranging from 3.25 to 4.37. The company's ability to cover its interest expenses has remained strong, indicating a healthy financial position and the ability to generate sufficient operating income to meet its interest obligations. The average interest coverage ratio over this period is 3.82, indicating that the company earns approximately 3.82 times the amount needed to cover its interest expenses. This suggests that Targa Resources Corp is managing its debt effectively and has a good capacity to service its debt obligations.
Peer comparison
Dec 31, 2023