Talos Energy (TALO)
Activity ratios
Short-term
Turnover ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Inventory turnover | — | 6.10 | 3.16 | 10.97 | 1.83 |
| Receivables turnover | 5.64 | 8.05 | 6.18 | 3.68 | 7.30 |
| Payables turnover | 2.91 | 1.22 | 1.81 | 3.78 | 1.91 |
| Working capital turnover | — | — | — | — | — |
Inventory turnover is not provided in the table, which limits our ability to analyze the efficiency of Talos Energy Inc in managing its inventory.
Receivables turnover indicates the number of times a company collects its average accounts receivable during a specific period. An increasing trend in receivables turnover from 2019 to 2022 suggests that Talos Energy Inc improved its collection efficiency. However, the decrease in 2023 may indicate a slowdown in collections compared to the previous year.
Payables turnover is not available in the data, preventing us from evaluating the company's management of its accounts payable.
Working capital turnover is not provided, making it impossible to assess the efficiency of Talos Energy Inc in utilizing its working capital to generate revenue.
In conclusion, based on the available data, Talos Energy Inc has shown improvement in its receivables turnover over the years, indicating effectiveness in collecting outstanding receivables. However, a lack of information on inventory turnover, payables turnover, and working capital turnover limits the comprehensive assessment of the company's overall activity ratios.
Average number of days
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 59.86 | 115.46 | 33.26 | 199.27 |
| Days of sales outstanding (DSO) | days | 64.67 | 45.36 | 59.07 | 99.30 | 50.00 |
| Number of days of payables | days | 125.61 | 300.38 | 202.17 | 96.45 | 191.45 |
Days of inventory on hand (DOH) is not provided in the table, making it impossible to analyze inventory turnover. However, based on the available data, the Days of Sales Outstanding (DSO) for Talos Energy Inc has shown fluctuations over the past five years. In 2023, DSO stands at 69.50 days, a significant increase compared to 46.84 days in 2022. This indicates that the average time taken to collect receivables from customers has increased, reflecting potential issues with accounts receivable management.
Moreover, the historical trend suggests that in 2021 and 2019, DSO was also relatively high at 64.37 days and 51.49 days, respectively, possibly indicating challenges in efficient collections. However, there was a spike in DSO in 2020 to 108.81 days, indicating a severe issue in collecting payments from customers during that period.
Unfortunately, the Number of Days of Payables is not provided in the table, which limits the analysis of the company's payment practices and liquidity. However, interpreting DSO alone suggests a need for Talos Energy Inc to focus on improving accounts receivable management and potentially tightening credit policies to reduce the days outstanding.
Long-term
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Fixed asset turnover | 0.36 | 0.62 | 0.52 | 0.23 | 0.41 |
| Total asset turnover | 0.30 | 0.54 | 0.45 | 0.20 | 0.35 |
The fixed asset turnover ratio for Talos Energy Inc has fluctuated over the past five years, ranging from 0.23 to 0.62. This ratio indicates the company's ability to generate revenues relative to its investment in fixed assets. A declining trend in the fixed asset turnover ratio may suggest inefficiency in utilizing fixed assets to generate sales.
Similarly, the total asset turnover ratio for Talos Energy Inc has also varied, with values between 0.21 and 0.54. This ratio reflects the company's overall efficiency in generating sales from its total assets. A lower total asset turnover ratio may indicate that the company is not effectively utilizing its total assets to generate revenue.
Overall, the trend in both the fixed asset turnover and total asset turnover ratios for Talos Energy Inc suggests some fluctuations, indicating potential changes in the company's asset utilization efficiency over the years. It is essential for stakeholders to further investigate the reasons behind these fluctuations to gain a deeper understanding of the company's operational performance and asset management strategies.