Talos Energy (TALO)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	33,637	44,145	69,852	34,233	87,022
Short-term investments	US$ in thousands	—	—	—	—	—
Receivables	US$ in thousands	258,314	205,295	201,406	156,691	124,394
Total current liabilities	US$ in thousands	578,615	607,058	600,526	447,534	370,452
Quick ratio		0.50	0.41	0.45	0.43	0.57

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($33,637K + $—K + $258,314K) ÷ $578,615K
= 0.50

The quick ratio of Talos Energy Inc has fluctuated over the last five years, ranging from 0.55 to 0.79. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets, excluding inventory.

From 2019 to 2021, the quick ratio declined steadily from 0.79 to 0.57, indicating a potential weakening in the company's short-term liquidity position. However, in 2022 and 2023, there was a slight improvement in the quick ratio to 0.61 and 0.73, respectively.

While the quick ratio values are below the ideal threshold of 1, the trend towards improvement in recent years may suggest that Talos Energy Inc has been working to strengthen its liquidity position. It is important for investors and stakeholders to monitor this ratio to assess the company's ability to cover its short-term obligations without relying heavily on inventory liquidation.