Alpha Metallurgical Resources Inc (AMR)
Inventory turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 2,650,680 | 2,501,530 | 2,413,090 | 1,803,030 | 1,430,110 |
| Inventory | US$ in thousands | 169,269 | 231,344 | 200,574 | 129,382 | 108,051 |
| Inventory turnover | 15.66 | 10.81 | 12.03 | 13.94 | 13.24 |
December 31, 2024 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $2,650,680K ÷ $169,269K
= 15.66
Alpha Metallurgical Resources Inc's inventory turnover has exhibited fluctuating trends over the past five years. The inventory turnover ratio measures the efficiency at which a company manages its inventory by indicating how many times inventory is sold and replaced within a given period.
On December 31, 2020, the inventory turnover ratio was 13.24, suggesting that Alpha Metallurgical Resources Inc turned over its inventory approximately 13.24 times during the year. This indicates the company had a relatively efficient inventory management system in place.
By the end of December 31, 2021, the inventory turnover ratio improved to 13.94, showing a further increase in inventory turnover efficiency over the year, which is a positive sign for the company.
However, the trend reversed in the following years, with the inventory turnover ratio declining to 12.03 on December 31, 2022, and further dropping to 10.81 on December 31, 2023. These lower ratios suggest that the company may be holding onto its inventory for a longer period compared to the previous years, which could potentially lead to increased carrying costs.
The inventory turnover ratio rebounded significantly to 15.66 by December 31, 2024, indicating a sharp improvement in inventory management efficiency for that year.
In conclusion, while the inventory turnover ratio of Alpha Metallurgical Resources Inc has experienced fluctuations over the past five years, the company should focus on maintaining a balance between managing inventory levels efficiently to avoid carrying excess inventory costs while ensuring product availability to meet customer demand.
Peer comparison
Dec 31, 2024