Talos Energy (TALO)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	4,816,310	3,058,630	2,766,820	2,834,550	2,589,480
Total stockholders’ equity	US$ in thousands	2,155,150	1,165,580	760,653	926,601	1,078,280
Financial leverage ratio		2.23	2.62	3.64	3.06	2.40

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,816,310K ÷ $2,155,150K
= 2.23

The financial leverage ratio of Talos Energy Inc has shown fluctuation over the past five years. The ratio decreased from 3.64 in 2021 to 2.23 in 2023, indicating a significant reduction in the company's reliance on debt funding. This downward trend suggests a lower level of financial risk and vulnerability to financial distress. However, it is important to note the increase in 2022 compared to 2023, which could indicate a temporary spike in debt levels.

Overall, Talos Energy Inc's financial leverage ratio has demonstrated a mixed performance in managing its debt levels over the years. Monitoring this ratio closely will be essential for stakeholders to assess the company's ability to meet its financial obligations and sustain long-term growth.