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.
Peer comparison
Dec 31, 2023