Talos Energy (TALO)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Net income (ttm)	US$ in thousands	-76,393	74,013	-16,263	-14,967	187,332	104,184	356,752	538,216	381,915	460,177	193,021	-127,902	-182,952	-694,707	-730,016	-744,845	-465,605	-34,558	90,739	326,114
Total stockholders’ equity	US$ in thousands	2,759,700	2,817,640	2,726,320	2,752,180	2,155,150	2,062,060	2,061,890	2,060,840	1,165,580	1,155,340	897,510	695,125	760,653	674,624	686,421	807,154	926,601	1,282,280	1,294,550	1,394,900
ROE		-2.77%	2.63%	-0.60%	-0.54%	8.69%	5.05%	17.30%	26.12%	32.77%	39.83%	21.51%	-18.40%	-24.05%	-102.98%	-106.35%	-92.28%	-50.25%	-2.70%	7.01%	23.38%

December 31, 2024 calculation

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

Talos Energy's Return on Equity (ROE) has shown significant fluctuations over the past few years. The ROE was positive in the first quarter of 2020 at 23.38%, indicating healthy profitability relative to shareholders' equity. However, there was a notable decline in the second quarter of 2020 to 7.01%, followed by negative ROE values in the subsequent quarters.

The ROE continued to deteriorate, reaching its lowest point at -106.35% in the second quarter of 2021, indicating that the company's net income was insufficient to cover the shareholders' equity, resulting in losses being incurred.

From the second half of 2022 onwards, the ROE began to improve, with positive values indicating better profitability relative to equity. The ROE reached 39.83% in the third quarter of 2022, reflecting a strong rebound in profitability.

Overall, Talos Energy's ROE has experienced significant volatility, possibly influenced by factors such as changes in oil prices, operational efficiency, and financial management strategies. Investors and stakeholders should closely monitor the company's financial performance and management decisions to assess the sustainability and improvement of its return on equity in the future.