Talos Energy (TALO)

Gross profit margin

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Gross profit (ttm) US$ in thousands 324,957 299,660 447,370 441,458 564,468 632,464 615,378 845,862 925,770 984,084 913,509 718,342 561,582 368,275 226,860 30,983 -36,028 25,827 132,012 340,940
Revenue (ttm) US$ in thousands 1,973,568 1,873,342 1,747,191 1,565,236 1,457,886 1,415,128 1,409,121 1,560,996 1,651,980 1,692,734 1,606,515 1,391,198 1,244,540 1,034,187 876,214 660,021 575,936 630,079 724,971 915,695
Gross profit margin 16.47% 16.00% 25.61% 28.20% 38.72% 44.69% 43.67% 54.19% 56.04% 58.14% 56.86% 51.63% 45.12% 35.61% 25.89% 4.69% -6.26% 4.10% 18.21% 37.23%

December 31, 2024 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $324,957K ÷ $1,973,568K
= 16.47%

The gross profit margin of Talos Energy has shown fluctuations over the period from March 31, 2020, to December 31, 2024.

During the initial period, the gross profit margin started at a relatively healthy level of 37.23% in March 2020 but experienced a significant decline to 18.21% by June 2020. This decline continued through the following quarters, reaching a low of -6.26% in December 2020, indicating that the company's cost of goods sold exceeded its revenues from sales, resulting in negative profitability at the gross level.

From March 2021 onwards, there was a turnaround in the gross profit margin, with gradual improvements seen over the subsequent quarters. The margin increased to 51.63% by March 2022, indicating that Talos Energy was able to efficiently manage its production costs and generate higher revenues relative to its production costs during this period.

The gross profit margin continued to exhibit a positive trend, peaking at 58.14% in September 2022. However, there was a slight decrease in the following quarters, with the margin stabilizing around the 40%-50% range between March 2023 and June 2024.

By December 31, 2024, the gross profit margin stood at 16.47%, indicating a decline from the earlier peaks but still reflecting a positive profitability level at the gross level, although at a lower rate compared to the highest points in the previous years.

Overall, the analysis of Talos Energy's gross profit margin highlights the company's ability to improve operational efficiency and generate profits from its core business activities, despite facing fluctuations in profitability over the analyzed period.