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.
Peer comparison
Dec 31, 2023