Talos Energy (TALO)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	1,648,611	1,573,682	1,299,821	1,123,778	893,418	782,664	793,743	715,134	726,210	708,650	693,006	672,856	682,958	665,912	649,354	629,038	611,964	604,252	592,959	574,755
Inventory	US$ in thousands	—	—	—	0	0	44,643	44,645	40,345	25,541	27,043	80,593	43,402	17,449	21,163	20,282	20,069	18,927	14,478	14,458	9,178
Inventory turnover		—	—	—	—	—	17.53	17.78	17.73	28.43	26.20	8.60	15.50	39.14	31.47	32.02	31.34	32.33	41.74	41.01	62.62

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $1,648,611K ÷ $—K
= —

Inventory turnover is a key financial ratio that measures how efficiently a company manages its inventory levels by indicating how many times during a period the inventory is sold and replaced. A high inventory turnover ratio generally signifies that the company is effectively selling its products and replenishing stock, while a low ratio may indicate overstocking or slow-moving inventory.

Analyzing Talos Energy's inventory turnover over the provided years, we observe fluctuations in the ratio. The ratio was relatively high at 62.62 on March 31, 2020, suggesting efficient inventory management. However, the ratio declined to 8.60 on June 30, 2022, indicating a potential issue with inventory turnover efficiency during that period.

Subsequently, the ratio showed some recovery, reaching 28.43 on December 31, 2022. However, the ratio dropped again to 17.53 on September 30, 2023, before stabilizing in the range of 17.73 to 17.78 in the following quarters.

The lack of data for the years beyond 2023 makes it challenging to provide a complete trend analysis. Nonetheless, the company should monitor its inventory turnover closely to ensure optimal inventory management practices and efficient use of resources.