Alpha Metallurgical Resources Inc (AMR)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,474,000 | 2,629,860 | 1,899,150 | 1,673,910 | 2,201,240 |
| Inventory | US$ in thousands | 231,344 | 200,574 | 129,382 | 108,051 | 150,888 |
| Inventory turnover | 10.69 | 13.11 | 14.68 | 15.49 | 14.59 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,474,000K ÷ $231,344K
= 10.69
Alpha Metallurgical Resources Inc's inventory turnover ratio has shown a declining trend over the past four years, dropping from 12.98 in 2021 to 10.18 in 2023. This indicates that the company's inventory is being sold and replaced less frequently each year. A lower inventory turnover ratio may suggest inefficiencies in inventory management, such as overstocking or slowing sales. It could also imply potential liquidity issues if excess inventory ties up cash that could be used elsewhere in the business. Further investigation into the reasons behind the decreasing trend in inventory turnover is warranted to identify and address any operational challenges or risks affecting Alpha Metallurgical Resources Inc.
Peer comparison
Dec 31, 2023