Talos Energy (TALO)

Debt-to-equity 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-equity ratio		0.46	0.50	1.26	1.06	0.68

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $992,614K ÷ $2,155,150K
= 0.46

The debt-to-equity ratio of Talos Energy Inc has fluctuated over the past five years, indicating changes in the company's capital structure and financial leverage.

In 2019, the company had a debt-to-equity ratio of 0.68, suggesting a moderate level of debt relative to equity. By the end of 2020, the ratio increased to 1.06, indicating a higher proportion of debt in the company's capital structure compared to equity. This increase could potentially raise concerns about the company's financial risk and ability to meet its debt obligations.

However, by the end of 2021, there was a significant spike in the debt-to-equity ratio to 1.27, suggesting a substantial increase in debt relative to equity. This sharp rise may indicate a higher financial risk for the company, as it has become more leveraged.

Subsequently, in 2022 and 2023, the debt-to-equity ratio decreased to 0.50 and 0.48, respectively. These lower ratios signify a reduced reliance on debt financing compared to equity, which may indicate improved financial stability and risk management.

Overall, the trend in Talos Energy Inc's debt-to-equity ratio shows fluctuations, with a notable increase in 2021 followed by a decrease in subsequent years. Investors and stakeholders should closely monitor these changes to assess the company's financial health and risk profile.