Talos Energy (TALO)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | — | — | 12.84 | 26.19 | 21.57 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 0.00 | 0.00 | 12.84 | 26.19 | 21.57 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= — + — – —
= 0.00
The cash conversion cycle of Talos Energy has exhibited varying trends over the years. In December 2020, the company's cash conversion cycle stood at 21.57 days, indicating that it took approximately 21.57 days for Talos Energy to convert its investments in inventory and other resources into cash.
By December 2021, the cash conversion cycle had increased to 26.19 days, suggesting a lengthening of the time it took for the company to generate cash from its operations. However, a significant improvement was observed in December 2022, with the cycle decreasing to 12.84 days, indicating a more efficient conversion of investments into cash.
The most notable trend was seen in December 2023 and 2024, where the cash conversion cycle reached 0.00 days, implying that Talos Energy managed to achieve an instantaneous conversion of resources into cash, which is a highly favorable outcome indicating strong liquidity and efficiency.
Overall, the cash conversion cycle of Talos Energy has shown fluctuations over the years, with improvements in efficiency and liquidity demonstrated in recent years, particularly in December 2023 and 2024 where the company achieved a zero-day cash conversion cycle.
Peer comparison
Dec 31, 2024