Talos Energy (TALO)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 116,248 | 181,690 | 495,486 | -51,449 | -330,607 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,759,700 | 2,155,150 | 1,165,580 | 760,653 | 926,601 |
| Return on total capital | 4.21% | 8.43% | 42.51% | -6.76% | -35.68% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $116,248K ÷ ($—K + $2,759,700K)
= 4.21%
The return on total capital for Talos Energy shows significant fluctuations over the years, ranging from negative values to positive values, indicating varying levels of efficiency in utilizing its total capital.
In December 31, 2020, the return on total capital was at -35.68%, reflecting a substantial loss in the efficiency of utilizing total capital. This negative figure suggests that the company may have struggled to generate profit relative to the capital invested during that period.
By December 31, 2021, the return on total capital improved to -6.76%, though it still remained negative. This indicates a partial recovery from the previous year, but the company was still not effectively utilizing its total capital to generate returns.
In December 31, 2022, there was a significant improvement in the return on total capital, standing at 42.51%. This sharp increase suggests that the company efficiently utilized its total capital to generate substantial returns, reflecting a strong period of profitability.
Following this peak, the return on total capital decreased to 8.43% by December 31, 2023. While lower than the previous year, this figure still indicates that the company continued to generate positive returns on its total capital, albeit at a reduced rate.
By December 31, 2024, the return on total capital further decreased to 4.21%, indicating a slight decline in the company's efficiency in generating returns relative to its total capital. Despite the decrease, the positive value suggests that the company continued to generate profit from its total capital investments during that period.
Overall, the analysis of the return on total capital for Talos Energy reveals fluctuations in efficiency and performance in utilizing its total capital over the years, with a mix of negative and positive values reflecting the company's varying financial health and profitability during the respective periods.
Peer comparison
Dec 31, 2024