Talos Energy (TALO)

Operating return on assets (Operating ROA)

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
Total assets US$ in thousands 6,191,800 4,816,310 3,058,630 2,766,820 2,834,550
Operating ROA 2.79% 3.77% 24.07% 13.54% -5.31%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $172,925K ÷ $6,191,800K
= 2.79%

Based on the data provided for Talos Energy's operating return on assets (Operating ROA) from 2020 to 2024, we observe fluctuations in the company's performance over the period.

In December 2020, the Operating ROA was negative at -5.31%, indicating that the company's operating income was insufficient to cover its assets, which may be a cause for concern.

By December 2021, Talos Energy experienced a significant improvement in performance, with the Operating ROA reaching 13.54%. This suggests that the company became more efficient in generating operating income relative to its assets, reflecting a positive trend.

In 2022, there was a remarkable increase in the Operating ROA to 24.07%, indicating a substantial improvement in profitability and operational efficiency for Talos Energy. This strong performance signals effective management of assets to generate higher returns.

However, in December 2023, the Operating ROA dropped to 3.77%, showing a decline in profitability compared to the previous year. This might indicate challenges faced by the company in maintaining the high level of operating income relative to its assets.

Finally, by December 2024, the Operating ROA decreased further to 2.79%, suggesting continued pressure on the company's ability to generate returns from its assets efficiently.

Overall, while Talos Energy exhibited improvements in operating performance between 2020 and 2022, the subsequent decline in Operating ROA from 2023 to 2024 raises concerns about the company's ongoing profitability and efficient asset utilization. Further analysis and monitoring of performance indicators are recommended to understand the factors driving these fluctuations in the Operating ROA.