Talos Energy (TALO)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	2,155,150	1,165,580	760,653	926,601	1,078,280
Debt-to-capital ratio		0.32	0.33	0.56	0.52	0.40

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $992,614K ÷ ($992,614K + $2,155,150K)
= 0.32

The debt-to-capital ratio of Talos Energy Inc has shown some fluctuations over the past five years, ranging from 0.32 to 0.56. The ratio indicates the proportion of the company's capital that is financed through debt, with values closer to 1 implying higher reliance on debt financing.

In 2023, the debt-to-capital ratio decreased to 0.32 from the previous year's ratio of 0.33, suggesting a slightly lower debt component in the company's capital structure compared to 2022. The decrease in the ratio may indicate a reduction in debt levels relative to total capital employed in 2023.

Looking back further, the ratio was notably higher in 2021 at 0.56, indicating a higher proportion of debt relative to capital in that year. However, since 2021, there has been a downward trend in the ratio, showing a gradual improvement in the company's debt management and capital structure.

Overall, the downward trend in the debt-to-capital ratio over the years suggests a potential improvement in the company's financial stability and risk management in terms of debt financing. Continued monitoring of this ratio will be essential to assess Talos Energy Inc's ongoing ability to manage its debt levels effectively.