Talos Energy (TALO)
Cash ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 108,172 | 33,637 | 44,145 | 69,852 | 34,233 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 723,055 | 578,615 | 607,058 | 600,526 | 447,534 |
| Cash ratio | 0.15 | 0.06 | 0.07 | 0.12 | 0.08 |
December 31, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($108,172K
+ $—K)
÷ $723,055K
= 0.15
The cash ratio of Talos Energy has shown some fluctuations over the years. As of December 31, 2020, the cash ratio was 0.08, indicating that the company had $0.08 in cash and cash equivalents for every $1 of current liabilities. The ratio improved to 0.12 by December 31, 2021, suggesting a better ability to cover short-term obligations with cash on hand.
However, there was a decrease in the cash ratio to 0.07 by December 31, 2022, and a further decline to 0.06 by December 31, 2023, which may raise concerns about the company's liquidity position and its ability to meet its immediate financial obligations.
On a positive note, the cash ratio increased significantly to 0.15 by December 31, 2024, which implies a stronger liquidity position compared to previous years.
Overall, while the cash ratio has fluctuated during the period analyzed, it is essential for Talos Energy to maintain a prudent level of cash reserves to ensure it can meet its short-term financial obligations effectively.
Peer comparison
Dec 31, 2024