Talos Energy (TALO)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	33,637	13,631	17,525	16,169	44,145	64,490	108,481	78,348	69,852	59,427	65,354	64,979	34,233	32,377	107,855	106,952	87,022	90,682	89,105	45,725
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	578,615	629,799	691,882	671,192	607,058	556,328	701,336	705,594	600,526	635,832	674,744	482,237	447,534	434,424	407,878	308,754	370,452	411,355	458,152	424,581
Cash ratio		0.06	0.02	0.03	0.02	0.07	0.12	0.15	0.11	0.12	0.09	0.10	0.13	0.08	0.07	0.26	0.35	0.23	0.22	0.19	0.11

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($33,637K + $—K) ÷ $578,615K
= 0.06

The cash ratio measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.

Analyzing the cash ratio of Talos Energy Inc over the past 8 quarters, we observe fluctuations in the ratio. In Q1 2022, the cash ratio was 0.18, indicating that the company had $0.18 in cash and cash equivalents for every $1 of current liabilities. The ratio improved in subsequent quarters, reaching its peak at 0.31 in Q3 2022, reflecting an increase in the company's cash reserves relative to its short-term obligations.

However, starting from Q4 2022, the cash ratio declined in the following quarters, reaching its lowest point at 0.20 in Q3 2023. This decrease may signal a potential liquidity risk or an increased reliance on other sources to meet short-term obligations.

Overall, despite the fluctuations, Talos Energy Inc maintained a relatively healthy cash position over the period, with the ratio consistently above 0.20. Management should continue to monitor the cash position and liquidity to ensure the company can cover its short-term liabilities effectively.