Talos Energy (TALO)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	382,592	316,128	925,770	561,582	-36,028
Revenue	US$ in thousands	1,973,570	1,457,890	1,651,980	1,244,540	575,936
Gross profit margin		19.39%	21.68%	56.04%	45.12%	-6.26%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $382,592K ÷ $1,973,570K
= 19.39%

Based on the data provided, Talos Energy's gross profit margin has shown significant fluctuations over the past five years. In December 31, 2020, the gross profit margin was reported at -6.26%, indicating that the company's cost of goods sold was higher than its revenues, resulting in a negative margin.

However, there was a remarkable turnaround in the following years. By December 31, 2021, the gross profit margin surged to 45.12%, reflecting a substantial improvement in the company's ability to generate profits after accounting for the direct costs associated with production.

The positive trend continued into December 31, 2022, with a further increase in the gross profit margin to 56.04%. This sharp rise suggests that Talos Energy was able to enhance its operational efficiency and effectively manage its production costs, resulting in a higher margin of profit.

In December 31, 2023, there was a notable decline in the gross profit margin to 21.68%. This decrease could indicate various factors such as increased production costs, pricing pressures, or changes in sales mix that impacted the company's profitability.

Finally, by December 31, 2024, the gross profit margin decreased further to 19.39%. This reduction may suggest challenges in maintaining profitability, potentially due to external market conditions, competition, or internal operational issues.

In conclusion, the analysis of Talos Energy's gross profit margin highlights both positive and negative trends in the company's ability to generate profits from its core operations. Monitoring and understanding these fluctuations are essential for stakeholders to assess the company's performance and financial health accurately.