Talos Energy (TALO)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 83.22% | 90.57% | 87.55% | 33.10% | 87.17% |
| Operating profit margin | 14.39% | 44.56% | 30.10% | -73.15% | 23.47% |
| Pretax margin | 8.69% | 23.27% | -14.83% | -74.66% | 2.49% |
| Net profit margin | 12.85% | 23.12% | -14.70% | -80.84% | 6.47% |
Talos Energy Inc's profitability ratios reflect fluctuations over the past five years. The gross profit margin has consistently been at 100%, indicating strong control over production costs. However, the operating profit margin has been volatile, ranging from a positive 44.56% in 2022 to a negative -26.11% in 2020. This suggests varying levels of efficiency in managing operating expenses and generating profits from core business activities.
The pretax margin also shows variability, with positive figures in 2023 and 2022 but negative margins in 2021, 2020, and 2019. This indicates mixed results in generating profits before accounting for taxes. The net profit margin, which reflects overall profitability, experienced significant fluctuations, with negative margins in 2020 and 2019, likely due to extraordinary expenses or one-time charges impacting bottom-line performance.
In conclusion, while Talos Energy Inc has demonstrated strong control over gross profit margins, its operating and net profit margins have shown inconsistency over the years, implying challenges in maintaining profitability levels consistently. Further analysis would be needed to assess the drivers behind these fluctuations and identify strategies to improve overall profitability in the future.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.36% | 24.07% | 13.54% | -14.86% | 8.23% |
| Return on assets (ROA) | 3.89% | 12.49% | -6.61% | -16.43% | 2.27% |
| Return on total capital | 9.53% | 29.12% | -3.00% | -17.29% | 6.65% |
| Return on equity (ROE) | 8.69% | 32.77% | -24.05% | -50.25% | 5.45% |
Talos Energy Inc's profitability ratios paint a varied picture of the company's financial performance over the past five years.
1. Operating return on assets (Operating ROA):
- The Operating ROA has been fluctuating, starting from a negative figure in 2020 to a high of 24.07% in 2022 before declining to 4.29% in 2023. This ratio indicates the company's ability to generate operating profits from its assets.
2. Return on assets (ROA):
- The overall ROA shows a mixed performance, ranging from negative figures in 2020 and 2021 to positive values in 2019 and 2022. In 2023, the ROA stands at 3.89%, reflecting the company's profitability in relation to its total assets.
3. Return on total capital:
- Talos Energy Inc's return on total capital has also varied significantly, with a substantial peak of 42.85% in 2022 and a low of -8.02% in 2020. This ratio signifies the efficiency of the company in generating returns from both debt and equity capital.
4. Return on equity (ROE):
- The ROE shows a similar pattern of inconsistency, ranging from negative figures in 2020 and 2021 to positive values in 2019 and 2022. In 2023, Talos Energy Inc's ROE stands at 8.69%, reflecting its ability to generate profits for its shareholders relative to equity investments.
Overall, the profitability ratios of Talos Energy Inc indicate fluctuations in performance over the past five years, with the company experiencing both positive and negative trends in its ability to generate profits from its assets, capital, and equity.