Talos Energy (TALO)

Fixed asset turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	1,457,886	1,415,128	1,409,121	1,560,996	1,651,980	1,692,734	1,606,515	1,391,198	1,244,540	1,037,296	881,524	666,630	587,486	645,015	738,735	936,671	927,620	953,044	1,007,055	924,151
Property, plant and equipment	US$ in thousands	4,040,310	4,007,310	4,137,510	4,157,510	2,643,280	2,380,230	2,351,960	2,370,950	2,388,580	2,483,490	2,497,520	2,497,320	2,536,170	2,814,160	2,734,470	2,688,550	2,225,610	2,251,350	2,238,920	2,172,280
Fixed asset turnover		0.36	0.35	0.34	0.38	0.62	0.71	0.68	0.59	0.52	0.42	0.35	0.27	0.23	0.23	0.27	0.35	0.42	0.42	0.45	0.43

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,457,886K ÷ $4,040,310K
= 0.36

The fixed asset turnover ratio measures the efficiency with which Talos Energy Inc is utilizing its fixed assets to generate revenue. A higher fixed asset turnover indicates that the company is generating more revenue per dollar of investment in fixed assets.

Looking at the data provided, we can observe that Talos Energy Inc's fixed asset turnover has been declining over the past eight quarters. In Q4 2023, the fixed asset turnover ratio was 0.36, slightly lower than the previous quarter's ratio of 0.35.

The decrease in fixed asset turnover may suggest that Talos Energy Inc is becoming less efficient in generating revenue from its fixed assets. This could indicate underutilization of assets or inefficient asset management practices within the company.

It is essential for the company to closely monitor its fixed asset turnover and implement strategies to improve efficiency in utilizing its fixed assets to drive higher revenue generation. This could involve optimizing asset utilization, increasing operational efficiency, or reviewing investment decisions related to fixed assets.