Alpha Metallurgical Resources Inc (AMR)
Working capital 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 |
| Total current assets | US$ in thousands | 1,048,300 | 1,114,420 | 747,986 | 510,135 | 711,479 |
| Total current liabilities | US$ in thousands | 309,930 | 402,625 | 295,929 | 259,054 | 315,152 |
| Working capital turnover | 4.70 | 5.76 | 5.00 | 5.64 | 5.05 |
December 31, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $3,471,420K ÷ ($1,048,300K – $309,930K)
= 4.70
Working capital turnover measures how efficiently a company is utilizing its working capital to generate revenue. A higher working capital turnover indicates better efficiency in utilizing current assets to support sales.
Analyzing the trend in Alpha Metallurgical Resources Inc's working capital turnover over the past four years, we observe the following:
- In 2023, the working capital turnover decreased to 4.70 from 5.76 in 2022, indicating a decline in the efficiency of using working capital to support sales.
- However, the working capital turnover in 2023 is still higher than the 2021 value (5.00) and close to the 2020 value (5.64), suggesting that the company is maintaining a relatively efficient level of working capital turnover.
Overall, while there was a slight dip in the working capital turnover in 2023 compared to the previous year, Alpha Metallurgical Resources Inc has historically demonstrated a good level of efficiency in utilizing its working capital to generate revenue. It is essential for the company to monitor and potentially improve this ratio to ensure optimal utilization of current assets in driving sales growth.
Peer comparison
Dec 31, 2023