Alpha Metallurgical Resources Inc (AMR)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 23.31 | 33.76 | 30.34 | 26.19 | 27.58 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 23.31 | 33.76 | 30.34 | 26.19 | 27.58 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 23.31 + — – —
= 23.31
Alpha Metallurgical Resources Inc's cash conversion cycle has experienced fluctuations over the past five years.
As of December 31, 2020, the company's cash conversion cycle stood at 27.58 days, indicating that it took approximately 27.58 days for the company to convert its investments in inventory and accounts receivable into cash.
By the end of 2021, the cash conversion cycle had improved slightly to 26.19 days, suggesting a more efficient management of inventory and receivables.
However, in the following years, the cash conversion cycle increased significantly. By December 31, 2022, the cycle had extended to 30.34 days and further to 33.76 days by December 31, 2023, indicating a potential slowdown in the company's cash conversion process.
The trend reversed in 2024, with the cash conversion cycle decreasing to 23.31 days, signaling a more effective management of cash flow.
Overall, the fluctuation in Alpha Metallurgical Resources Inc's cash conversion cycle over the years highlights the importance of monitoring and managing working capital effectively to ensure optimal liquidity and operational efficiency.
Peer comparison
Dec 31, 2024