Alpha Metallurgical Resources Inc (AMR)

Cash conversion cycle

Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019
Days of inventory on hand (DOH) days 34.86 39.83 39.72 38.04 27.84 24.73 24.18 27.26 24.87 35.34 44.50 28.01 25.93 29.23 31.58 60.91 80.84 98.47 413.62
Days of sales outstanding (DSO) days 53.59 47.33 45.54 50.59 36.24 44.76 68.94 78.86 79.73 69.76 52.36 55.90 57.60 41.21 37.66 42.98 45.82 40.15 44.73
Number of days of payables days 19.41 17.80 15.60 17.51 14.72 14.07 14.60 18.44 17.31 25.63 30.18 25.19 14.02 17.84 15.44 31.02 44.32 56.26 224.59
Cash conversion cycle days 69.04 69.36 69.66 71.13 49.36 55.42 78.52 87.68 87.28 79.47 66.68 58.72 69.51 52.60 53.79 72.86 82.34 82.36 233.76

December 31, 2023 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 34.86 + 53.59 – 19.41
= 69.04

The cash conversion cycle for Alpha Metallurgical Resources Inc has fluctuated over the past eight quarters, indicating variations in the company's efficiency in converting resources invested in inventory into cash received from sales. In Q1 2022, the cycle was at its longest, at 88.98 days, suggesting slower turnover of inventory and collection of receivables. Subsequently, there was a notable improvement, with the cycle declining to 51.33 days in Q4 2022, indicating a more efficient utilization of resources.

However, from Q1 2023 onwards, the cash conversion cycle started increasing again, reaching 73.74 days in Q1 2023. This rise may stem from factors such as increasing inventory levels, longer payment terms with suppliers, or challenges in collecting receivables promptly. Despite a slight decrease in Q4 2023 to 69.47 days, the cycle remains elevated compared to earlier quarters.

Overall, the trend in Alpha Metallurgical Resources Inc's cash conversion cycle reveals periods of both improvement and deterioration in efficiency. It is crucial for the company to address issues impacting the cycle to enhance working capital management and sustain healthy cash flows.


Peer comparison

Dec 31, 2023

Company name
Symbol
Cash conversion cycle
Alpha Metallurgical Resources Inc
AMR
69.04
Arch Resources Inc
ARCH
37.37
Peabody Energy Corp
BTU
63.87