Alpha Metallurgical Resources Inc (AMR)
Cash conversion cycle
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 34.13 | 27.84 | 24.87 | 23.56 | 25.02 |
| Days of sales outstanding (DSO) | days | 53.59 | 36.24 | 79.73 | 57.60 | 52.44 |
| Number of days of payables | days | 19.01 | 14.72 | 17.32 | 12.74 | 13.72 |
| Cash conversion cycle | days | 68.71 | 49.36 | 87.28 | 68.42 | 63.74 |
December 31, 2023 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.13 + 53.59 – 19.01
= 68.71
The cash conversion cycle for Alpha Metallurgical Resources Inc has fluctuated over the past four years. In 2023, the company's cash conversion cycle increased to 69.47 days from 51.33 days in 2022. This indicates that the company took longer to convert its investments in inventory and accounts receivable into cash during 2023.
Comparing 2023 to 2021, the cash conversion cycle decreased significantly from 87.60 days to 69.47 days, indicating an improvement in the company's efficiency in managing its working capital and converting it into cash. However, the cycle was longer in 2023 compared to 2020 when it stood at 51.69 days.
Overall, fluctuations in the cash conversion cycle suggest varying trends in the company's ability to manage its cash flow and working capital efficiently over the years, potentially impacting its liquidity and operational performance.
Peer comparison
Dec 31, 2023