Alpha Metallurgical Resources Inc (AMR)
Fixed asset turnover
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 3,471,417 | 3,334,874 | 3,462,822 | 3,940,861 | 4,101,586 | 4,106,455 | 3,885,528 | 2,944,393 | 2,258,686 | 1,754,220 | 1,440,971 | 1,399,636 | 1,416,187 | 1,591,412 | 1,781,684 | 2,083,950 | 2,290,260 | 2,363,268 | 2,285,275 |
| Property, plant and equipment | US$ in thousands | 583,043 | 539,904 | 514,859 | 486,721 | 437,216 | 404,171 | 392,074 | 369,449 | 359,231 | 356,305 | 357,152 | 361,120 | 359,358 | 395,276 | 416,905 | 561,836 | 583,262 | 614,624 | 630,654 |
| Fixed asset turnover | 5.95 | 6.18 | 6.73 | 8.10 | 9.38 | 10.16 | 9.91 | 7.97 | 6.29 | 4.92 | 4.03 | 3.88 | 3.94 | 4.03 | 4.27 | 3.71 | 3.93 | 3.85 | 3.62 |
December 31, 2023 calculation
Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $3,471,417K ÷ $583,043K
= 5.95
The fixed asset turnover ratio for Alpha Metallurgical Resources Inc shows a fluctuating trend over the past eight quarters. In Q4 2023, the fixed asset turnover ratio decreased to 3.34 from 3.38 in the previous quarter, indicating a decline in efficiency in generating revenue from fixed assets. Despite this decrease, the ratio remains relatively high compared to the beginning of the period.
Looking back over the past two years, the fixed asset turnover ratio has shown a general downward trend from Q1 2022 to Q4 2023. The ratio peaked at 4.96 in Q3 2022 and has since been on a declining trajectory. This suggests a potential decrease in the company's ability to utilize its fixed assets effectively to generate sales revenue.
It is important for Alpha Metallurgical Resources Inc to analyze the reasons behind the fluctuations in the fixed asset turnover ratio and identify areas for improvement in asset utilization. A decreasing trend in this ratio may indicate inefficiencies in asset management or underperformance in sales generation relative to investments in fixed assets. Further analysis and strategic adjustments may be necessary to enhance operational efficiency and profitability in the future.
Peer comparison
Dec 31, 2023