Talos Energy (TALO)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	992,614	585,340	956,667	985,512	732,981
Total assets	US$ in thousands	4,816,310	3,058,630	2,766,820	2,834,550	2,589,480
Debt-to-assets ratio		0.21	0.19	0.35	0.35	0.28

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $992,614K ÷ $4,816,310K
= 0.21

The debt-to-assets ratio measures the extent to which a company's assets are financed by debt. For Talos Energy Inc, the trend in the debt-to-assets ratio over the past five years indicates the proportion of the company's assets financed by debt.

From 2019 to 2020, there was a slight increase in the debt-to-assets ratio from 0.28 to 0.35, suggesting that a higher percentage of Talos Energy's assets were financed through debt. This could indicate an increase in borrowing or a decrease in asset value during that period.

However, from 2020 to 2021, there was a significant decrease in the debt-to-assets ratio from 0.35 to 0.19, signifying a decrease in the proportion of assets funded by debt. This could be a positive sign as it may indicate that Talos Energy reduced its debt levels relative to its asset base or experienced an increase in asset value.

In 2022, the debt-to-assets ratio slightly increased to 0.21, suggesting a small shift back towards higher debt financing of assets compared to the previous year. This could indicate a new borrowing activity or a change in asset structure for the company.

Overall, Talos Energy Inc has maintained a relatively conservative debt-to-assets ratio over the years, with the ratio fluctuating within a moderate range of 0.19 to 0.35. It is essential for investors and stakeholders to monitor changes in this ratio to assess the company's financial leverage and risk exposure.