Talos Energy (TALO)

Short-term

Turnover ratios

Based on the provided data for Talos Energy, let's analyze the activity ratios:

1. Inventory Turnover:
- Inventory turnover indicates how efficiently a company manages its inventory. A higher turnover is generally favorable as it implies that inventory is selling quickly.
- Talos Energy's inventory turnover has shown fluctuations over the years. It was 16.92 in 2020, decreased to 13.94 in 2021, and then significantly increased to 28.43 in 2022.
- The absence of data for 2023 and 2024 makes it difficult to assess the trend further, but the significant increase in 2022 is a positive sign of efficient inventory management.

2. Receivables Turnover:
- Receivables turnover ratio reflects how quickly the company collects payment from its customers. A higher turnover ratio suggests efficient collection processes.
- In this case, all data points are missing, which makes it impossible to analyze the receivables turnover for Talos Energy.

3. Payables Turnover:
- Payables turnover ratio measures how quickly a company pays its suppliers. A higher turnover usually indicates better management of payables.
- Similar to receivables turnover, there is no data available for payables turnover for Talos Energy across the years.

4. Working Capital Turnover:
- Working capital turnover ratio evaluates how effectively the company utilizes its working capital to generate sales.
- However, the data indicates that information on working capital turnover is not available for any of the years provided.

In conclusion, based on the available data, it is observed that Talos Energy's inventory turnover has been volatile, with a significant increase in 2022. However, the absence of information on receivables turnover, payables turnover, and working capital turnover limits a comprehensive assessment of the company's overall efficiency in managing its operating assets and liabilities.

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Average number of days

Based on the provided data for Talos Energy, we can analyze the activity ratios as follows:

1. Days of Inventory on Hand (DOH):
- As of December 31, 2020, Talos Energy had 21.57 days of inventory on hand.
- By December 31, 2021, this figure increased to 26.19 days.
- However, there was a significant improvement by December 31, 2022, where Talos Energy managed to reduce the days of inventory on hand to 12.84 days.
- The data for December 31, 2023 and December 31, 2024 was not provided, so it is not possible to assess the trend for those years.

2. Days of Sales Outstanding (DSO):
- Unfortunately, there is no data available for days of sales outstanding for any of the years provided. Without this information, it is challenging to evaluate how efficiently Talos Energy is collecting its accounts receivable.

3. Number of Days of Payables:
- The data for the number of days of payables is not available for any of the years provided. This ratio helps in assessing how long a company takes to pay its suppliers, which is crucial for understanding its liquidity and working capital management.

In conclusion, based on the available data, Talos Energy has shown fluctuations in its inventory management efficiency over the years. However, the lack of information on sales outstanding and payables hinders a comprehensive analysis of the company's overall activity ratios. Further data on these metrics would provide a more holistic view of Talos Energy's operational effectiveness and financial health.

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Long-term

The fixed asset turnover ratio for Talos Energy has shown a significant improvement over the years, increasing from 0.23 in 2020 to 0.62 in 2022. This suggests that the company is generating more revenue relative to its investment in fixed assets, indicating improved operational efficiency in utilizing its long-term assets to generate sales.

In contrast, the total asset turnover ratio, which reflects the company's ability to generate sales from its total assets, shows a different trend. It increased from 0.20 in 2020 to 0.54 in 2022, indicating a positive trend in utilizing all assets efficiently to generate revenue. However, there was a slight decline in 2023 to 0.30 and a further decrease in 2024 to 0.32, which could be a reflection of changes in the company's operating environment or asset mix.

Overall, while the fixed asset turnover ratio has shown strong improvement, the total asset turnover ratio demonstrates a fluctuating trend over the years. This analysis suggests that Talos Energy has been effectively utilizing its fixed and total assets to generate revenue, but there may be areas for further optimization in the future to maintain consistent operational efficiency.