Talos Energy (TALO)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	4,816,310	4,753,100	4,805,410	4,795,760	3,058,630	2,813,370	2,863,100	2,810,490	2,766,820	2,786,160	2,852,160	2,839,690	2,834,550	3,172,280	3,174,650	3,238,190	2,589,480	2,611,880	2,592,040	2,439,940
Total stockholders’ equity	US$ in thousands	2,155,150	2,062,060	2,061,890	2,060,840	1,165,580	1,155,340	897,510	695,125	760,653	674,624	686,421	807,154	926,601	1,282,280	1,294,550	1,394,900	1,078,280	1,074,820	998,041	899,986
Financial leverage ratio		2.23	2.31	2.33	2.33	2.62	2.44	3.19	4.04	3.64	4.13	4.16	3.52	3.06	2.47	2.45	2.32	2.40	2.43	2.60	2.71

December 31, 2023 calculation

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

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations. Talos Energy Inc's financial leverage ratio has exhibited fluctuations over the past eight quarters, ranging from a low of 2.23 in Q4 2023 to a high of 4.04 in Q1 2022.

In recent quarters, there appears to be a downward trend in the financial leverage ratio, decreasing from 2.62 in Q4 2022 to 2.23 in Q4 2023. This suggests that Talos Energy Inc may be relying less on debt financing in its capital structure.

However, it is noteworthy that the financial leverage ratio was significantly higher in Q1 2022 at 4.04, indicating a higher level of debt usage during that period. This could imply higher financial risk and interest expense for the company at that time.

Overall, it is important for Talos Energy Inc to carefully manage its debt levels to strike a balance between utilizing debt for growth opportunities and maintaining a sustainable capital structure. Despite recent improvements, monitoring the financial leverage ratio over time will be crucial for assessing the company's financial health and risk profile.