Talos Energy (TALO)

Quick 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	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	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Receivables	US$ in thousands	258,314	275,182	243,944	250,399	205,295	192,358	270,758	266,302	201,406	132,951	177,820	177,435	156,691	126,002	119,819	113,921	124,394	125,916	146,245	119,098
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
Quick ratio		0.50	0.46	0.38	0.40	0.41	0.46	0.54	0.49	0.45	0.30	0.36	0.50	0.43	0.36	0.56	0.72	0.57	0.53	0.51	0.39

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio of 1 or higher is generally considered satisfactory, as it indicates that a company can cover its current liabilities without relying on inventory sales.

In the case of Talos Energy Inc, the quick ratio has ranged from 0.57 to 0.73 over the past eight quarters. The trend in the quick ratio indicates the company's liquidity position over time.

It is observed that the quick ratio fluctuated throughout the periods, with the highest quick ratio of 0.73 in Q4 2023 and the lowest quick ratio of 0.57 in Q1 2022.

A quick ratio below 1 may indicate a potential liquidity risk, as it suggests that the company may have difficulty meeting its short-term obligations with its liquid assets alone. However, it is important to consider industry norms and the company's specific circumstances when evaluating the adequacy of the quick ratio.

Overall, based on the quick ratio trend observed for Talos Energy Inc, it is recommended to monitor the company's liquidity position closely to ensure it can meet its short-term obligations efficiently.