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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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