Alpha Metallurgical Resources Inc (AMR)
Fixed asset turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 3,471,420 | 4,101,590 | 2,258,690 | 1,416,190 | 2,001,280 |
| Property, plant and equipment | US$ in thousands | 583,043 | 437,216 | 359,231 | 359,358 | 583,262 |
| Fixed asset turnover | 5.95 | 9.38 | 6.29 | 3.94 | 3.43 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $3,471,420K ÷ $583,043K
= 5.95
The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate revenue. A higher ratio indicates better utilization of fixed assets to generate sales.
Alpha Metallurgical Resources Inc has exhibited fluctuations in its fixed asset turnover ratio over the past four years. In 2023, the fixed asset turnover ratio decreased to 3.34 from 4.59 in 2022, indicating a decline in the efficiency of utilizing fixed assets to generate revenue. This could suggest a decrease in sales relative to the investment in fixed assets during the year.
However, when comparing the 2023 ratio to the 2021 and 2020 ratios of 2.80 and 1.71 respectively, the company still shows improved efficiency in utilizing fixed assets in generating revenue.
Further analysis would be required to understand the factors contributing to the fluctuations in the fixed asset turnover ratio and assess the company's overall operational efficiency and profitability.
Peer comparison
Dec 31, 2023