Talos Energy (TALO)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	1,457,890	1,651,980	1,244,540	575,936	908,064
Property, plant and equipment	US$ in thousands	4,040,310	2,643,280	2,388,580	2,536,170	2,225,610
Fixed asset turnover		0.36	0.62	0.52	0.23	0.41

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,457,890K ÷ $4,040,310K
= 0.36

The fixed asset turnover ratio for Talos Energy Inc has varied over the past five years. In 2023, the ratio was 0.36, indicating that the company generated $0.36 in revenue for every $1 invested in fixed assets. This represents a decrease from the previous year's ratio of 0.62.

The decrease in fixed asset turnover may suggest that Talos Energy Inc is less efficient in generating revenue from its fixed assets in 2023 compared to 2022. It is important to note that a lower fixed asset turnover ratio can indicate underutilization of assets or potentially inefficient asset management practices.

Overall, monitoring the trend in fixed asset turnover ratio over time can provide insights into the company's operational efficiency and asset utilization, which are crucial aspects to consider for performance evaluation and decision-making.