Targa Resources Inc (TRGP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 |
| 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 | 0.00 | 0.00 | 0.00 |
| 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 |
Targa Resources Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to its assets. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been at 0.00% across various reporting periods from March 2020 to December 2024, showing that the company is not highly leveraged and has minimal debt obligations compared to its overall financial resources.
The financial leverage ratio, which measures the extent to which a company is using debt to finance its operations, shows a steady increase from 4.84 in March 2020 to 8.77 in December 2024. Although there is an upward trend in the financial leverage ratio, it is still within a reasonable range and does not raise immediate concerns about the company's ability to meet its financial obligations.
Overall, Targa Resources Inc's solvency ratios suggest a sound financial health and a conservative approach to managing its capital structure, with a focus on maintaining a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.52 | 3.43 | 3.18 | 3.25 | 3.82 | 3.88 | 4.07 | 4.36 | 3.74 | 2.44 | 2.49 | 1.89 | 1.99 | 9.20 | 8.88 | 8.76 | 9.15 | 2.78 | 2.08 | 1.94 |
Based on the data provided, Targa Resources Inc's interest coverage ratio has shown some fluctuations over the period. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In December 2021, March 2022, and June 2022, the interest coverage ratio decreased to 1.99, 1.89, and 2.49 respectively, indicating a slight vulnerability in meeting interest payments from operating income during those quarters.
However, the ratio improved significantly in the following quarters, reaching its peak at 9.20 in September 2021. This suggests a strong ability to cover interest expenses with operating income.
Subsequently, the interest coverage ratio remained relatively stable between 3.18 and 4.36 from June 2024 to March 2023, indicating a comfortable position in meeting interest obligations with operating income.
Overall, Targa Resources Inc's interest coverage ratio has exhibited some variability, with periods of both strength and weakness. It is important for investors and creditors to monitor this ratio to assess the company's financial health and ability to service its debt in the long term.