Talos Energy (TALO)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	187,332	381,915	-182,952	-465,605	58,729
Total stockholders’ equity	US$ in thousands	2,155,150	1,165,580	760,653	926,601	1,078,280
ROE		8.69%	32.77%	-24.05%	-50.25%	5.45%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $187,332K ÷ $2,155,150K
= 8.69%

Talos Energy Inc's return on equity (ROE) has fluctuated significantly over the past five years. In 2019, the ROE was 5.45%, indicating a moderate return on the shareholders' equity. However, there was a sharp decline in 2020, with the ROE dropping to -50.25%, signifying a negative return and potentially raised concerns about the company's ability to generate profits relative to the shareholders' equity.

The company's performance improved notably in 2021, with the ROE rebounding to -24.05%. Although still negative, this shows progress towards profitability. In 2022, the ROE saw a significant improvement to 32.77%, indicating a strong return on equity, reflecting positively on the company's ability to generate earnings in relation to its shareholder investments.

However, in 2023, the ROE decreased to 8.69%, suggesting a slight decline in the return on equity compared to the previous year. It is essential to assess the factors influencing these fluctuations in ROE, such as changes in profitability, asset utilization, financial leverage, and overall operational efficiency, to provide a comprehensive analysis of Talos Energy Inc's financial performance.