Talos Energy (TALO)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	209,790	253,672	290,889	526,451	736,119	781,801	710,152	527,509	374,616	-35,126	-164,524	-352,471	-421,310	-88,904	1,038	190,513	213,094	240,097	278,575	222,914
Total assets	US$ in thousands	4,816,310	4,753,100	4,805,410	4,795,760	3,058,630	2,813,370	2,863,100	2,810,490	2,766,820	2,786,160	2,852,160	2,839,690	2,834,550	3,172,280	3,174,650	3,238,190	2,589,480	2,611,880	2,592,040	2,439,940
Operating ROA		4.36%	5.34%	6.05%	10.98%	24.07%	27.79%	24.80%	18.77%	13.54%	-1.26%	-5.77%	-12.41%	-14.86%	-2.80%	0.03%	5.88%	8.23%	9.19%	10.75%	9.14%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $209,790K ÷ $4,816,310K
= 4.36%

The operating return on assets (ROA) for Talos Energy Inc has shown a declining trend over the past eight quarters. In Q4 2022, the operating ROA was at its peak at 28.43%, demonstrating strong operational efficiency and asset utilization. However, there has been a continuous decrease in operating ROA since then, with the most recent quarter, Q4 2023, recording the lowest at 4.29%.

This downward trend indicates a potential deterioration in the company's ability to generate operating income relative to its total assets. It suggests that either the company's operating income has decreased or its asset base has expanded without a proportionate increase in operating income.

Further analysis is necessary to identify the specific factors contributing to this trend and to determine the effectiveness of management in optimizing the use of assets to generate operating profits.