Talos Energy (TALO)

Short-term

Turnover ratios

The inventory turnover ratio for Talos Energy has shown fluctuations over the years. It decreased from 62.62 on March 31, 2020, to 8.60 on June 30, 2022, before increasing to 28.43 on December 31, 2022. However, it dropped again to 17.78 on June 30, 2023. This ratio measures how many times the company's inventory is sold and replaced over a specific period.

The receivables turnover ratio is not available for analysis, indicating that there is no data provided for this metric. This ratio typically measures how efficiently a company collects payments from its customers.

Similarly, the payables turnover ratio is also not available for analysis, suggesting that there is no data provided for this metric. This ratio measures how quickly a company pays its suppliers.

The working capital turnover ratio, which is defined as net sales divided by working capital, was 4.73 on March 31, 2020. This ratio provides insight into how efficiently Talos Energy utilizes its working capital to generate revenue. It indicates that the company generated $4.73 in revenue for every dollar of working capital invested as of March 31, 2020.

Overall, the analysis of Talos Energy's activity ratios suggests mixed performance in managing its inventory and working capital, with limited information available for receivables and payables turnover ratios.

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Average number of days

Based on the provided data, we can analyze the activity ratios of Talos Energy as follows:

1. Days of Inventory on Hand (DOH):
- Talos Energy's DOH fluctuated during the period under review.
- The company efficiently managed its inventory in March 2020, with only 5.83 days' worth on hand, but this number increased to 42.45 days by June 2022, signaling potential inventory management issues.
- Subsequently, there was a decline in inventory days, reaching 20.82 days by September 2023.
- As of December 2023 and beyond, there is no available data, so the inventory management trend post-September 2023 remains unknown.
- Overall, Talos Energy experienced fluctuations in its inventory days, with potential implications for working capital management and operational efficiency.

2. Days of Sales Outstanding (DSO):
- No data was provided for Talos Energy's DSO, so it is unable to assess the efficiency of the company's accounts receivable management during the analyzed period.
- Without DSO figures, it is challenging to evaluate the timeliness of the company's collection of receivables and its impact on cash flow and liquidity.

3. Number of Days of Payables:
- Similar to DSO, there is a lack of data for Talos Energy's days of payables for the period in question.
- The absence of payables information restricts an assessment of how long the company took to pay its suppliers and its strategies for managing trade credit terms.
- Understanding the payables turnover would have provided insights into the company's cash flow management and relationships with its suppliers.

In conclusion, while the information on Talos Energy's DOH indicates fluctuations in inventory management efficiency, the absence of data on DSO and payables days limits a comprehensive analysis of the company's working capital management and overall financial performance.

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Long-term

The fixed asset turnover ratio for Talos Energy has shown fluctuation over the years, starting at 0.34 in March 2020, decreasing to 0.22 in September 2020, and then gradually increasing to reach its peak at 0.71 in September 2022. However, it dipped to 0.34 in June 2023 and remained relatively stable around this level until the end of 2023.

On the other hand, the total asset turnover ratio also exhibited variability during the same period. It started at 0.28 in March 2020, fell to 0.20 by September 2020, and then steadily rose to 0.60 in September 2022. However, it declined to 0.24 in March 2024.

Overall, both ratios indicate how efficiently Talos Energy is utilizing its assets to generate revenue. The increase in the fixed asset turnover ratio until 2022 suggests better utilization of fixed assets, while the total asset turnover ratio shows the effectiveness of the company in generating revenue based on its total assets. However, the recent decline in both ratios may signal a need for further analysis to understand the underlying causes and potential impacts on the company's financial performance.