Targa Resources Inc (TRGP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.38 | 0.36 | 0.41 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.58 | 0.55 | 0.55 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 1.37 | 1.20 | 1.24 |
| Financial leverage ratio | 7.55 | 8.06 | 7.27 | 7.46 | 7.34 | 8.13 | 7.41 | 9.01 | 7.56 | 7.31 | 7.05 | 6.81 | 5.98 | 5.66 | 5.47 | 5.30 | 3.82 | 3.56 | 3.31 | 3.05 |
Targa Resources Corp's solvency ratios, as indicated in the table, provide vital insights into the company's ability to meet its long-term financial obligations. The debt-to-assets ratio has shown a slight increasing trend from Q1 2022 to Q4 2023, indicating that the company's proportion of assets financed by debt has been on the rise. This suggests a higher level of financial risk associated with Targa Resources Corp's capital structure.
Similarly, the debt-to-capital ratio has also displayed a relatively stable pattern over the analyzed periods, hovering around 0.83 to 0.84. This ratio indicates that approximately 83-84% of the company's capital is represented by debt, signaling a significant reliance on borrowed funds to finance its operations.
The debt-to-equity ratio has exhibited fluctuations but generally shows an increasing trend from Q1 2022 to Q4 2023. This indicates that Targa Resources Corp has been utilizing more debt relative to equity to fund its operations, which could increase the financial risk for the company and its shareholders.
The financial leverage ratio, which measures the company's ability to meet its financial obligations through debt, has also shown variations but remains high across the periods analyzed. This suggests that Targa Resources Corp has a high level of debt in its capital structure, which could potentially lead to higher financial risk and interest obligations.
In conclusion, the solvency ratios of Targa Resources Corp reflect a notable reliance on debt financing to support its operations, indicating a heightened level of financial risk associated with the company's capital structure. Monitoring these ratios over time is crucial for assessing the company's financial health and risk profile.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Targa Resources Corp's interest coverage ratio has been relatively stable over the past eight quarters, ranging from 3.25 to 4.37. The interest coverage ratio measures the company's ability to pay its interest expenses on outstanding debt with its earnings before interest and taxes (EBIT). A higher ratio indicates that the company is in a better position to meet its interest obligations.
The average interest coverage ratio for Targa Resources Corp over this period is approximately 3.82, which suggests that the company's earnings have been sufficient to cover its interest expenses by around 3.82 times. This indicates a moderate level of financial health and indicates that the company has a relatively healthy ability to service its debt obligations.
Overall, Targa Resources Corp's interest coverage ratio appears to be at a consistent and satisfactory level, providing investors and stakeholders with a measure of the company's financial stability and ability to meet its debt obligations.