Talos Energy (TALO)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	-71,390	126,735	384,452	-184,587	-430,022
Revenue	US$ in thousands	1,973,570	1,457,890	1,651,980	1,244,540	575,936
Pretax margin		-3.62%	8.69%	23.27%	-14.83%	-74.66%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-71,390K ÷ $1,973,570K
= -3.62%

The pretax margin of Talos Energy, as indicated by the financial data provided, has shown significant fluctuations over the past five years.

In December 2020, the company had a negative pretax margin of -74.66%, indicating that the company's operating expenses and interest payments exceeded its revenue, resulting in a loss before taxes.

By December 2021, the pretax margin improved to -14.83%, reflecting a reduction in losses compared to the previous year. This suggests that the company may have implemented cost-cutting measures or experienced an increase in revenue during this period.

In December 2022, Talos Energy achieved a positive pretax margin of 23.27%, signaling a significant turnaround in its financial performance. This indicates that the company generated a profit before accounting for taxes, which is a positive indicator of financial health.

However, the pretax margin dropped to 8.69% by December 2023, indicating a slight decrease in profitability compared to the previous year. Despite this decline, the company still managed to maintain a positive margin, albeit at a lower level.

Finally, by December 2024, the pretax margin decreased further to -3.62%, reverting to negative territory. This decline suggests that Talos Energy may have faced challenges or experienced a decrease in profitability during this period.

Overall, the analysis of Talos Energy's pretax margin highlights the company's fluctuating financial performance over the past five years, showcasing a mix of losses and profits. It is important for the company to closely monitor and manage its operational efficiency and revenue generation to ensure sustainable profitability in the future.