Talos Energy (TALO)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | 59.86 | 115.46 | 33.26 | 199.27 |
| Days of sales outstanding (DSO) | days | 64.67 | 45.36 | 59.07 | 99.30 | 50.00 |
| Number of days of payables | days | 125.61 | 300.38 | 202.17 | 96.45 | 191.45 |
| Cash conversion cycle | days | -60.94 | -195.16 | -27.64 | 36.11 | 57.82 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + 64.67 – 125.61
= -60.94
The cash conversion cycle for Talos Energy Inc has shown fluctuations over the past five years. As of December 31, 2023, the company's cash conversion cycle increased to 69.50 days compared to 46.84 days in the previous year. This suggests that it took Talos Energy Inc longer to convert its investments in inventory to cash during the most recent period.
Looking back further, the cash conversion cycle was 64.37 days in 2021 and significantly higher at 108.81 days in 2020. The improvement in 2021 compared to 2020 indicates a more efficient management of working capital during that period.
Moreover, in 2019, the cash conversion cycle was relatively lower at 51.49 days, indicating a faster conversion of inventory and receivables into cash compared to the subsequent years.
Overall, the trend in Talos Energy Inc's cash conversion cycle shows variability over the years, with fluctuations reflecting changes in the company's efficiency in managing its cash flow, inventory levels, and accounts receivable. Monitoring this metric can help assess the effectiveness of the company's working capital management strategies.
Peer comparison
Dec 31, 2023