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.