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GuruFocus has detected 6 Warning Signs with Targa Resources Corp $TRGP.
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Targa Resources Corp (NYSE:TRGP)
Days Inventory
7.80 (As of Dec. 2016)

Targa Resources Corp's average inventory for the three months ended in Dec. 2016 was $144 Mil. Targa Resources Corp's cost of goods sold for the three months ended in Dec. 2016 was $1,684 Mil. Hence, Targa Resources Corp's days inventory for the three months ended in Dec. 2016 was 7.80.

TRGP' s Days Inventory Range Over the Past 10 Years
Min: 3.46   Max: 10.52
Current: 8.02

3.46
10.52

During the past 9 years, Targa Resources Corp's highest Days Inventory was 10.52. The lowest was 3.46. And the median was 7.48.

TRGP's Days Inventory is ranked higher than
76% of the 80 Companies
in the Global Oil & Gas Midstream industry.

( Industry Median: 16.16 vs. TRGP: 8.02 )

Targa Resources Corp's days inventory declined from Dec. 2015 (10.11) to Dec. 2016 (7.80).

Inventory can be measured by Days Sales of Inventory (DSI). Targa Resources Corp's days sales of inventory (DSI) for the three months ended in Dec. 2016 was 6.53.

Inventory turnover measures how fast the company turns over its inventory within a year. Targa Resources Corp's inventory turnover for the three months ended in Dec. 2016 was 11.69.

Inventory to revenue ratio determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Targa Resources Corp's inventory to revenue ratio for the three months ended in Dec. 2016 was 0.07.


Definition

Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Targa Resources Corp's Days Inventory for the fiscal year that ended in Dec. 2016 is calculated as

Days Inventory (A: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (A: Dec. 2015 ) + Inventory (A: Dec. 2016 )) / 2 ) / COGS (A: Dec. 2016 )*Days in Period
=( (141 + 137.7) / 2 ) / 5476.6*365
=139.35 / 5476.6*365
=9.29

Targa Resources Corp's Days Inventory for the quarter that ended in Dec. 2016 is calculated as:

Days Inventory (Q: Dec. 2016 )
=Average Inventory / COGS*Days in Period
=( (Inventory (Q: Sep. 2016 ) + Inventory (Q: Dec. 2016 )) / 2 ) / COGS (Q: Dec. 2016 )*Days in Period
=( (150.3 + 137.7) / 2 ) / 1683.7*365 / 4
=144 / 1683.7*365 / 4
=7.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Explanation

An increase of Days Inventory may indicate the company's sales slowed.

1. Inventory can be measured by Days Sales of Inventory (DSI).

Targa Resources Corp's Days Sales of Inventory for the three months ended in Dec. 2016 is calculated as

Days Sales of Inventory (DSI)=Average Inventory/Revenue*Days in Period
=144/2012.5*365 / 4
=6.53

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Targa Resources Corp's Inventory Turnover for the three months ended in Dec. 2016 is calculated as

3. Inventory to Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Targa Resources Corp's Inventory to Revenue for the three months ended in Dec. 2016 is calculated as

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.


Be Aware

A lot of business are seasonable. It makes more sense to compare Days Inventory from the same period in the previous year instead of from the previous quarter.


Related Terms

Cost of Goods Sold, Inventory, Revenue, Inventory Turnover, Inventory to Revenue


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Targa Resources Corp Annual Data

Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DaysInventory 0.003.465.193.494.317.488.287.8010.529.29

Targa Resources Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DaysInventory 9.2210.998.176.749.6410.118.096.148.737.80
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