Talos Energy (TALO)

Fixed asset turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	1,973,570	1,457,890	1,651,980	1,244,540	575,936
Property, plant and equipment	US$ in thousands	—	—	2,649,180	2,394,300	2,543,020
Fixed asset turnover		—	—	0.62	0.52	0.23

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $1,973,570K ÷ $—K
= —

The fixed asset turnover ratio is used to evaluate a company's efficiency in generating revenue from its investment in fixed assets. In the case of Talos Energy, the fixed asset turnover has shown an improving trend over the past few years.

In December 31, 2020, the fixed asset turnover ratio was 0.23, indicating that Talos Energy generated $0.23 in revenue for every dollar invested in fixed assets during that period. However, by December 31, 2021, the ratio had increased to 0.52, demonstrating a significant improvement in the company's ability to utilize its fixed assets more efficiently to generate revenue.

The trend continued to improve in subsequent years, with the fixed asset turnover ratio reaching 0.62 by December 31, 2022. This suggests that Talos Energy was able to generate even more revenue per dollar of investment in fixed assets, showcasing improved operational efficiency and asset utilization.

However, it is worth noting that the data for December 31, 2023, and December 31, 2024, is unavailable (represented as "—"), making it difficult to assess the company's performance for those years based on the fixed asset turnover ratio alone.

Overall, the increasing trend in Talos Energy's fixed asset turnover ratio from 2020 to 2022 reflects the company's efforts to enhance its operational efficiency and maximize the returns on its investment in fixed assets. Further analysis would be required to understand the factors contributing to this improvement and to assess the company's overall financial performance in the absence of data for the subsequent years.