Alpha Metallurgical Resources Inc (AMR)

Short-term

Turnover ratios

Activity ratios provide insights into how efficiently a company is managing its assets and liabilities to generate sales and cash flow. Let's analyze the activity ratios of Alpha Metallurgical Resources Inc based on the provided data:

1. Inventory Turnover:
- The inventory turnover ratio measures how many times a company's inventory is sold and replaced during a specific period. Alpha Metallurgical Resources Inc's inventory turnover has been relatively stable over the years, ranging from 10.81 to 15.66.
- A high inventory turnover indicates that the company is efficiently managing its inventory, minimizing holding costs, and quickly converting inventory into sales.

2. Receivables Turnover:
- The receivables turnover ratio evaluates how efficiently a company collects its accounts receivable. The data provided shows that receivables turnover is missing for all years, indicating that specific data for this ratio is not available.
- Without the data for receivables turnover, it is challenging to assess the effectiveness of Alpha Metallurgical Resources Inc in collecting outstanding payments from customers.

3. Payables Turnover:
- The payables turnover ratio assesses how quickly a company pays its suppliers. Similarly, the data suggests that payables turnover information is not available for analysis for any of the years provided.
- Without details on payables turnover, it is difficult to evaluate how efficiently Alpha Metallurgical Resources Inc is managing its trade payables and vendor relationships.

4. Working Capital Turnover:
- The working capital turnover ratio measures how efficiently a company is utilizing its working capital to generate sales. The data indicates that Alpha Metallurgical Resources Inc's working capital turnover has declined from 5.64 in 2020 to 3.76 in 2024.
- A decreasing trend in working capital turnover may suggest that the company is not effectively utilizing its resources to generate revenue, which could indicate potential inefficiencies in operations.

In conclusion, while Alpha Metallurgical Resources Inc demonstrates consistent inventory turnover efficiency, the lack of data for receivables turnover and payables turnover limits a comprehensive analysis of its overall activity efficiency. The declining trend in working capital turnover warrants further investigation into the company's working capital management strategies.

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Average number of days

Alpha Metallurgical Resources Inc's activity ratios provide insights into the efficiency of the company's operations:

1. Days of Inventory on Hand (DOH):
- The company's DOH decreased from 27.58 days in December 2020 to 26.19 days in December 2021, indicating an improvement in managing inventory levels.
- However, there was a slight increase to 30.34 days in December 2022 and a further increase to 33.76 days in December 2023, suggesting a potential buildup of inventory.
- By December 2024, the DOH decreased to 23.31 days, which could indicate more efficient inventory management compared to the previous year.

2. Days of Sales Outstanding (DSO):
- The DSO data is not provided for the years in the dataset, indicating that the company's accounts receivable turnover is not available for analysis.

3. Number of Days of Payables:
- Similar to DSO, the information for the number of days of payables is not available for the years in the dataset, making it challenging to assess the company's payment practices and liquidity position.

In summary, while the DOH ratio fluctuated over the years, indicating varying levels of inventory management efficiency, the lack of DSO and payables data limits a comprehensive assessment of Alpha Metallurgical Resources Inc's overall activity ratios and working capital management practices. It would be beneficial for the company to provide complete data on all activity ratios for a more thorough analysis of its operational efficiency.

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Long-term

Alpha Metallurgical Resources Inc's fixed asset turnover has shown a significant improvement over the years, increasing from 1.70 in 2020 to 5.08 in 2021 and then stabilizing around 4.59 in 2022. This ratio indicates that the company generated $4.59 of sales for each dollar invested in fixed assets during the year. However, the data for 2023 and 2024 are missing, which limits the trend analysis.

In contrast, the total asset turnover ratio has shown fluctuations during the period under review. It increased from 0.84 in 2020 to 1.22 in 2021, indicating an improvement in the efficiency of utilizing total assets to generate revenue. Subsequently, the ratio peaked at 1.77 in 2022 before declining to 1.44 in 2023 and further to 1.21 in 2024.

Overall, the upward trend in the fixed asset turnover ratio suggests that Alpha Metallurgical Resources Inc has been more efficient in utilizing its fixed assets to generate revenue. However, the fluctuations in the total asset turnover ratio indicate variability in the company's overall asset utilization efficiency during the period. The missing data for 2023 and 2024, especially for fixed asset turnover, make it challenging to assess the company's long-term performance accurately.