Alpha Metallurgical Resources Inc (AMR)

Liquidity ratios

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Current ratio 4.13 3.38 2.77 2.53 1.97
Quick ratio 1.92 0.87 0.86 0.27 0.54
Cash ratio 1.92 0.87 0.86 0.27 0.54

Alpha Metallurgical Resources Inc's liquidity ratios have displayed an improving trend over the years.

- The current ratio, which measures the company's ability to cover its short-term liabilities with its current assets, has increased from 1.97 in 2020 to 4.13 in 2024. This indicates that the company has significantly strengthened its ability to meet its short-term obligations.

- The quick ratio, also known as the acid-test ratio, provides a more stringent measure of liquidity by excluding inventory from current assets. Alpha Metallurgical Resources Inc's quick ratio has shown volatility but generally improved from 0.27 in 2021 to 1.92 in 2024, suggesting an enhanced ability to meet immediate obligations without relying on inventory.

- The cash ratio, which focuses solely on the most liquid assets like cash and cash equivalents, has followed a similar trend to the quick ratio, increasing from 0.27 in 2021 to 1.92 in 2024. This indicates that the company holds more cash relative to its current liabilities, providing a strong cushion for potential short-term financial challenges.

Overall, the liquidity ratios of Alpha Metallurgical Resources Inc have been on an upward trajectory, reflecting a healthier financial position with improved short-term liquidity and ability to meet obligations promptly.


Additional liquidity measure

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash conversion cycle days 23.31 33.76 30.34 26.19 27.58

The cash conversion cycle of Alpha Metallurgical Resources Inc has shown fluctuations over the years. In December 31, 2020, the company's cash conversion cycle was 27.58 days, which decreased slightly to 26.19 days by December 31, 2021. However, the cycle increased in the following years, reaching 30.34 days by December 31, 2022, and further increasing to 33.76 days by December 31, 2023. The most recent data available, as of December 31, 2024, shows an improvement in the cash conversion cycle, decreasing to 23.31 days.

Overall, the trend in the cash conversion cycle indicates that Alpha Metallurgical Resources Inc may have experienced some challenges in managing its working capital efficiency in the past few years. A shorter cash conversion cycle suggests that the company is able to convert its investments in inventory and accounts receivable into cash more quickly, which is generally a positive sign for liquidity and operational efficiency. Conversely, a longer cash conversion cycle may indicate inefficiencies in managing working capital, potentially leading to cash flow constraints.