Talos Energy (TALO)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-76,393	187,332	381,915	-182,952	-465,605
Total stockholders’ equity	US$ in thousands	2,759,700	2,155,150	1,165,580	760,653	926,601
ROE		-2.77%	8.69%	32.77%	-24.05%	-50.25%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-76,393K ÷ $2,759,700K
= -2.77%

Based on the provided data, Talos Energy's return on equity (ROE) has shown fluctuating performance over the years.

1. December 31, 2020: The ROE was -50.25%, indicating that the company had a negative return on equity for this period. This implies that the company's net income was not sufficient to generate a positive return for shareholders relative to their equity investments.

2. December 31, 2021: The ROE improved to -24.05%, but still remained in negative territory. Although there was an improvement from the previous year, the company was still not effectively utilizing shareholder equity to generate profits.

3. December 31, 2022: The ROE increased significantly to 32.77%, showing a strong positive return on equity. This suggests that the company was able to generate profits more efficiently compared to the equity invested by shareholders.

4. December 31, 2023: The ROE decreased to 8.69%, indicating a moderate decline in the return on equity compared to the previous year. While still positive, the company's efficiency in generating returns for shareholders decreased.

5. December 31, 2024: The ROE further declined to -2.77%, returning to negative territory. This suggests that the company's profitability relative to shareholder equity decreased, resulting in a negative return for this period.

Overall, Talos Energy's ROE has been volatile, with periods of negative and positive returns. It is essential for the company to focus on improving its profitability and operational efficiency to consistently provide positive returns for its shareholders.