Talos Energy (TALO)
Return on total capital
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 299,872 | 211,730 | 463,926 | 626,249 | 509,885 | 584,692 | 320,161 | -77 | -51,485 | -512,771 | -584,198 | -656,305 | -330,615 | 7,219 | 160,567 | 450,081 | 120,445 | 206,109 | 200,250 | 113,768 |
| Long-term debt | US$ in thousands | 992,614 | 1,018,770 | 1,000,110 | 977,011 | 585,340 | 652,108 | 788,468 | 925,081 | 956,667 | 978,777 | 976,573 | 1,049,360 | 985,512 | 994,748 | 997,041 | 1,033,160 | 732,981 | 697,192 | 697,130 | 665,935 |
| Total stockholders’ equity | US$ in thousands | 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 | 1,078,280 | 1,074,820 | 998,041 | 899,986 |
| Return on total capital | 9.53% | 6.87% | 15.15% | 20.61% | 29.12% | 32.35% | 18.99% | -0.00% | -3.00% | -31.01% | -35.13% | -35.35% | -17.29% | 0.32% | 7.01% | 18.54% | 6.65% | 11.63% | 11.81% | 7.27% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $299,872K ÷ ($992,614K + $2,155,150K)
= 9.53%
Based on the data provided for Talos Energy Inc's return on total capital, we observe fluctuations in performance over the quarters. The return on total capital ranged from a low of 6.49% in Q4 2023 to a high of 45.06% in Q3 2022. Overall, the company's return on total capital has shown variability, potentially indicating changes in the efficiency of capital utilization or profitability of the business over time.
The trend indicates that the return on total capital has decreased from the high levels seen in 2022 to lower levels in 2023, with a notable decline in Q4 2023 compared to the previous quarters. This decline may reflect challenges or changes in the company's operations, capital structure, or profitability drivers during this period.
It is important to further investigate the factors contributing to the fluctuations in return on total capital to understand the underlying performance drivers and assess the company's ability to generate returns from its total capital investments. Additional analysis and comparison with industry benchmarks or peer companies could provide further insights into Talos Energy Inc's capital efficiency and overall financial performance.
Peer comparison
Dec 31, 2023