Talos Energy (TALO)

Operating profit margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Operating income US$ in thousands 172,925 181,690 736,119 374,616 -150,376
Revenue US$ in thousands 1,973,570 1,457,890 1,651,980 1,244,540 575,936
Operating profit margin 8.76% 12.46% 44.56% 30.10% -26.11%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $172,925K ÷ $1,973,570K
= 8.76%

The operating profit margin of Talos Energy has shown significant fluctuations over the years based on the provided data. It stood at -26.11% as of December 31, 2020, indicating a negative margin, which could be a concerning sign for the company's operational efficiency and profitability. However, there has been a notable improvement in the following years.

By December 31, 2021, the operating profit margin jumped to 30.10%, signaling a strong turnaround in the company's profitability. This positive trend continued into December 31, 2022, with a substantial increase to 44.56%, reflecting improved cost management and revenue generation.

Nevertheless, there was a decline in the operating profit margin by December 31, 2023, dropping to 12.46%. This decrease may signify challenges or increased expenses impacting the company's profitability during that period. Additionally, the margin further decreased to 8.76% by December 31, 2024, suggesting a potential need for Talos Energy to address operational efficiency and cost control measures to enhance profitability.

Overall, while Talos Energy has exhibited both positive and negative swings in its operating profit margin over the years, the company should focus on sustaining and improving performance levels to ensure long-term financial stability and growth.