Talos Energy (TALO)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 299,880 | 509,950 | -51,449 | -330,607 | 120,435 |
| Interest expense | US$ in thousands | 173,145 | 125,498 | 133,138 | 99,415 | 97,847 |
| Interest coverage | 1.73 | 4.06 | -0.39 | -3.33 | 1.23 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $299,880K ÷ $173,145K
= 1.73
The interest coverage ratio for Talos Energy Inc has fluctuated over the past five years. In 2023, the interest coverage ratio was 1.19, indicating that the company generated just enough operating income to cover its interest expenses. This represents a significant decrease from the previous year's ratio of 5.98, suggesting a decline in the company's ability to cover its interest obligations.
Looking back further, in 2021 and 2019, the interest coverage ratios were 2.95 and 2.30 respectively. These ratios were positive, indicating that the company had more than enough operating income to cover its interest expenses during those years.
However, in 2020, the interest coverage ratio was negative at -1.54, indicating that the company's operating income was insufficient to cover its interest expenses during that particular year. Overall, the trend in Talos Energy Inc's interest coverage ratio shows some volatility, with the company experiencing both strong and weak coverage of its interest expenses in recent years. Further analysis would be needed to understand the factors driving these fluctuations and to assess the company's overall financial health.
Peer comparison
Dec 31, 2023