Talos Energy (TALO)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	1,973,568	1,873,342	1,747,191	1,565,236	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	1,034,187	876,214	660,021	575,936	630,079	724,971	915,695
Property, plant and equipment	US$ in thousands	—	—	—	—	—	4,019,620	4,155,610	4,176,080	2,649,180	2,385,750	2,357,550	2,376,600	2,394,300	2,489,240	2,505,120	2,504,050	2,543,020	2,821,220	2,741,820	2,696,140
Fixed asset turnover		—	—	—	—	—	0.35	0.34	0.37	0.62	0.71	0.68	0.59	0.52	0.42	0.35	0.26	0.23	0.22	0.26	0.34

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,973,568K ÷ $—K
= —

Fixed asset turnover is a financial ratio that measures a company's efficiency in generating revenue from its fixed assets. For Talos Energy, the trend in fixed asset turnover over the past few years has shown variations.

From March 31, 2020, to September 30, 2021, the fixed asset turnover ratio of Talos Energy increased steadily from 0.34 to 0.42, indicating improved efficiency in utilizing its fixed assets to generate sales. This upward trend suggests that the company may have been able to extract more value from its fixed assets during this period.

However, from December 31, 2021, to June 30, 2022, there was a notable spike in the fixed asset turnover ratio, reaching a high of 0.68. This peak indicates that Talos Energy was exceptionally efficient in generating revenue from its fixed assets during this period, possibly due to optimized asset utilization or increased sales.

Subsequently, from September 30, 2022, to March 31, 2024, the fixed asset turnover ratio fluctuated within a narrower range, hovering between 0.34 and 0.71. The decline in the ratio from the peak of 0.71 to 0.34 may suggest a dip in efficiency in utilizing fixed assets to drive sales for the company.

It is noteworthy that the data for the fixed asset turnover ratio is not available for the latter half of 2024, which limits our ability to provide a complete analysis of Talos Energy's recent performance in this aspect. Continued monitoring of this ratio in future periods will be essential to assess the company's ongoing efficiency in leveraging its fixed assets for revenue generation.