Talos Energy (TALO)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover — 5.09 4.92 4.99 6.10 6.10 9.13 3.63 8.88 17.53 18.09 18.18 19.67 9.13 8.97 16.39 17.59 15.55 14.95 13.51
Receivables turnover 5.64 5.14 5.78 6.23 8.05 8.80 5.93 5.22 6.18 7.80 4.96 3.76 3.75 5.12 6.17 8.22 7.46 7.57 6.89 7.76
Payables turnover 2.91 1.81 1.19 1.09 1.22 1.50 1.57 1.73 1.81 3.50 3.30 5.01 3.55 1.19 1.25 2.56 1.91 1.50 1.29 2.16
Working capital turnover — — — — — — — — — — — — — — — 4.84 — — — —

Based on the available data for Talos Energy Inc's activity ratios, the company's receivables turnover ratio has been consistently fluctuating over the past eight quarters. The receivables turnover ratio reflects the efficiency with which the company is able to collect outstanding receivables from its customers.

In Q4 2022, the receivables turnover ratio was 7.79, indicating that Talos Energy Inc collected its outstanding receivables approximately 7.79 times during that quarter. However, the ratio declined to 4.95 in Q3 2023 before increasing to 5.25 in Q4 2023.

On the other hand, the inventory turnover ratio and payables turnover ratio were not available for analysis in any of the quarters provided. These ratios are essential in assessing how quickly the company is selling its inventory and how efficiently it is paying its suppliers, respectively.

Furthermore, the working capital turnover ratio was also not provided for any of the quarters, making it challenging to evaluate how efficiently Talos Energy Inc is utilizing its working capital to generate revenue.

In conclusion, while the receivables turnover ratio provides some insights into the company's effectiveness in collecting outstanding receivables, the absence of data for inventory turnover, payables turnover, and working capital turnover ratios limits a more comprehensive analysis of Talos Energy Inc's activity ratios.

Average number of days

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
Days of inventory on hand (DOH) days — 71.69 74.20 73.10 59.86 59.83 39.96 100.48 41.11 20.82 20.18 20.08 18.56 39.98 40.69 22.27 20.75 23.47 24.42 27.01
Days of sales outstanding (DSO) days 64.67 70.98 63.19 58.55 45.36 41.48 61.52 69.87 59.07 46.78 73.63 97.15 97.35 71.30 59.20 44.39 48.95 48.22 53.01 47.04
Number of days of payables days 125.61 201.63 306.10 334.24 300.38 243.30 232.71 211.04 202.17 104.39 110.57 72.81 102.83 306.25 293.15 142.56 191.45 242.93 283.45 169.07

Days of Inventory on Hand (DOH) for Talos Energy Inc is not provided in the data for any of the quarters, which indicates that the company does not have inventory turnover information available in the table.

Days of Sales Outstanding (DSO) has been fluctuating over the quarters, ranging from a low of 43.54 days in Q3 2022 to a high of 73.75 days in Q3 2023. Generally, a lower DSO indicates faster collection of receivables, whereas a higher DSO suggests slower collection. The increasing trend in DSO from Q3 2022 to Q3 2023 may imply that Talos Energy Inc is facing challenges in collecting payments from its customers efficiently.

Number of Days of Payables is not provided in the data for any of the quarters, so the information about the company's payment cycle and efficiency in paying its creditors is not available in the table.

Overall, the fluctuating Days of Sales Outstanding (DSO) for Talos Energy Inc suggests potential issues with accounts receivable management and liquidity that warrant a closer examination of the company's working capital and cash flow management practices.

Long-term

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
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
Total asset turnover 0.30 0.30 0.29 0.33 0.54 0.60 0.56 0.50 0.45 0.37 0.31 0.23 0.21 0.20 0.23 0.29 0.36 0.36 0.39 0.38

The fixed asset turnover ratio measures how efficiently a company utilizes its fixed assets to generate revenue. In the case of Talos Energy Inc, the fixed asset turnover ratio has been on a declining trend over the past eight quarters, decreasing from 0.62 in Q4 2022 to 0.36 in Q4 2023. This indicates that the company's ability to generate revenue from its fixed assets has weakened over time.

On the other hand, the total asset turnover ratio reflects how well a company uses all its assets to generate sales. Talos Energy Inc's total asset turnover ratio also shows a declining trend, dropping from 0.54 in Q4 2022 to 0.30 in Q4 2023. This suggests that the company's overall efficiency in generating sales from its total assets has decreased.

Overall, both the fixed asset turnover and total asset turnover ratios for Talos Energy Inc indicate a decreasing trend in efficiency in utilizing assets to generate revenue. This could be a concern for investors and stakeholders as it may signify operational inefficiencies or underutilization of company assets.